Optimism among landlords is at
the highest level for almost three years, according to a recent survey.
The research,
by Paragon mortgages, questioned over 200 landlords about their prospects for 2013. 30%
of which said they were feeling positive about their property portfolio – the strongest
indicator since mid-2010.
The
increased availability of buy-to-let finances would appear to be the main
factor behind the optimism, with 32 per cent describing it as ‘reasonably
available’ (compared to 29 per cent in the fourth quarter of last year) and
just 2 per cent feeling it was 'unavailable' still.
Healthy
average yields may also be a reason behind the optimism, with those surveyed reporting
an average yield of 6.2 per cent compared. Professional landlords reported yields of 6.6
per cent, compared to 4.7 per cent for private investors.
“The first quarter of 2013 has
been a relatively positive one for landlords. The increasing level of optimism
is a good indication of how landlords are feeling about the prospects for the
private rented sector,” says Paragon director of mortgages John Heron.
Inline
with other recent national studies, void periods were also down on last year,
with the average period landlords experienced across their portfolios
decreasing to 2.8 weeks, down from 3 weeks in the fourth quarter of 2012.
“Due to such high levels of
tenant demand it is unsurprising that void periods continue to remain low.
While we have seen a good start to the year, we need to see landlords making
further investments in their portfolios to try and meet the growing demand for
rental property. The buy-to-let market has made great progress over the last 18
months but it is vital that the momentum continues in the coming months.”
According to another recent
survey, of over 50,000 property investors, the highest rental income remains in
inner London, were the average is currently £2,387 per month (up 1.9% from last
year). Outside of London, rents have risen by a further 5.4% year or year up to
£1,107 per month.
Rental property demand rising
and increased buy-to-let lending, combined with rising rental yields and void
periods falling, is the perfect recipe for Landlords, especially those looking
to expand their portfolios.
Whether you are looking to
invest in new buy-to-let property, or for comprehensive cover on your existing portfolio,
Discount Insurance can provide an instant quote online.
Richard Williams
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