A study by specialist buy-to-let lender Paragon Mortgages reveals that residential property purchases by landlords remained strong in the first quarter (Q1) of 2012.
At Beresfords Group, the number of buy-to-let investors actively seeking to buy additional properties has risen by 26% on Q1 2011.
Furthermore, a report by independent researchers, BDRC Continental shows that the landlords have expanded their portfolio by an average of 1.8 properties in the last 12 months. Also, 20% indicated that they plan to buy in the next year.
Tenant demand has also remained steady, with limited availability of properties causing lettings to go through quickly and prices to increase sensibly.
Commuters to London are looking for homes within close proximity of a train station or good road network.
Managing Director of Beresfords’ lettings division, Steven Bond, says: “The demand for rented accommodation from tenants is expected to grow significantly over the next 20 years as many become long-term renters either through choice, affordability or other credit related issues.
“It has been a positive start to 2012 with tenant demand high. However, the current shortage of properties will need to be increased to meet continued tenant demand.”1