There has been a big jump in the number of landlords looking to buy semi-detached property, whereas the demand for terraced houses is at almost half previous levels.
Research coming from leading Buy-to-Let mortgage lender, Paragon Mortgages, which specialises in delivering lending solutions designed for professional landlords with more complex requirements, reveals that the traditional terraced property much favoured by landlords is falling out of favour.
Paragon, which has been tracking landlord confidence and views on the buy-to-let market for 13 years, says there has been a marked increase in the number of landlords on the look-out for semi-detached properties amongst those expecting to purchase buy-to-let property soon
The search for semis it seems is up from 23% in Q4 2014 to 35% in Q1 2015, whereas the proportion of landlords looking to buy terraced property had fallen from 67% in Q4 2014 to 35% in Paragon’s most recent survey.
This change in demand for the two different property types will result in a more even distribution of interest across the broad spectrum of property types from landlords than previously. In total, among those looking to buy soon, 30% of landlords said they were interested in adding a flat to their portfolio, 35% were on the looking for a semi-detached house, 35% for a terraced house and 22% said they were considering more specialist units such as multi-unit blocks and houses in multiple occupation (HMOs).
Paragon’s Q1 2015 report also reveals that a higher proportion of landlords are now optimistic about the prospects for their property portfolios, with more than one quarter (27%) feeling positive about the future and there’s been an increase in those expecting to buy soon, up from 15% to 18%.
John Heron, Director of Mortgages, said:
“The growing proportion of landlords looking to purchase buy-to-let property sometime soon points to continued, steady growth in the Private Rented Sector.
“Meanwhile, a closer look at interest levels for different property types suggests landlords are taking a broader perspective in order to cater for the wider range of households looking for a suitable home in the rental sector.”
Article courtesy of LandlordZONE