Investors Look at New Property Types
By |Published On: 20th October 2012|

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Investors Look at New Property Types

By |Published On: 20th October 2012|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

Investors Look at New Property Types

Investors Look at New Property Types

Landlords may still favour flats and terraced houses when looking at buying to let, however, they are beginning to broaden their choices by investing in other types of property, according to Paragon Mortgages.

Paragon Mortgages’ latest research found that 58% of respondents said that during the last quarter of 2012, they would look to invest in flats. 58% also said terraced houses, 30% in semi-detached homes, and 21% in detached properties. Of the landlords surveyed, 16% says that they expected to increase their portfolio this quarter.1

The rise in landlords looking to invest in larger homes may mirror the amount of families looking to rent, rather than buy. A lot of those who would have previously bought a house are unable to get mortgages, or cannot sell their house but need to move away, so are renting elsewhere.

Managing Director of Paragon Mortgages, John Heron, says: “This responsiveness of the private rented sector to changes in the shape of housing demand is one of the major strengths of the sector and it would be good to see policymakers work with private landlords to make more of this capability.”1

Typically, student accommodation and Houses in Multiple Occupation (HMOs) generate the highest yields for landlords, however, they are often more difficult to manage. Landlords renting to families may not experience such high returns, but may have an easier job to do.

 

 

About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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