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Landlords Build Confidence as Tenant Demand Increases

Confidence in the UK buy-to-let market grew in the first quarter of 2016, as 4 out of 10 landlords were found to believe that tenant demand is increasing in the newest survey.

Residential Buy-to-Let Property Investment

Confidence in the UK buy-to-let market grew in the first quarter of 2016, as 4 out of 10 landlords were found to believe that tenant demand is increasing in the newest survey.

Research carried out by consultancy BDCR Continental on behalf of Paragon Mortgages found that of the landlords surveyed in Q1 2016, 39% of respondents believed that tenant demand is increasing – a 5% increase from the 34% in Q4 2015.


In a similar trend, the proportion of landlords who perceived tenant demand as stable was shown to have increased from 20% in the final quarter of 2015 to 36% in the first quarter of this year.


The research also indicated that the number of landlords seeking to expand their portfolios is also increasing. With confidence towards the buy-to-let market growing, 19% of landlords surveyed expressed an interest in expanding their property portfolio, increasing by 2% from Q4 2015.


The number of landlords looking to sell their properties has also decreased, falling by 3% over the last quarter to just 16%.


The figures are an indication that confidence in the buy-to-let market is improving among landlords following a slight decrease in the last quarter of 2015 following the announcement of the new Stamp Duty surcharge on second properties announced in the Autumn Statement last November.


Rental property continues to be viewed favourably by landlords, whom saw yields increase to an average of 5.7% in the first quarter of 2016. 38% of landlords polled believed that investing in the private rented sector (PRS) is ‘much better’ than other investment options such as stocks and shares, with a further 33% describing investment in the PRS as a ‘little better’ than other options. Only 10% thought that the PRS is worse than other types of investment.

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