Photo credit: Boyce Duprey
House price growth may be slowing in the UK with mortgage rates at favourable lows, but many are still struggling to afford to climb onto the housing ladder. As a result, would-be buyers are still turning to the private rented sector for accommodation, with four in 10 landlords telling Paragon Morgages that demand is growing.
The survey, which tracks landlord confidence in the third quarter of 2014, shows that half of landlords believed demand was stable, with 41 per cent saying it was on the up. Recent figures have also shown that tenant arrears are declining, as personal financial health improves, which is bolstering confidence among buy to let investors.
Looking ahead, 61 per cent of landlords felt that the level of tenant arrears would remain stable over the next 12 months.
John Heron, Director of Mortgages, said: “Our latest survey of landlords reveals that that the past quarter has been a stable and steady one, with just over a third of landlords saying they feel more optimistic about the prospects for their rental portfolios.
“At this point in the year, we can usually gauge how the wider buy-to-let market has performed and what likely lending volumes for the calendar year will be. Last year, the Council of Mortgage Lenders (CML) reported total buy-to-let lending for 2013 as £20.7 billion. Current thinking is that gross buy-to-let lending this year will be around the £25 billion mark, which represents a healthy increase over 2013.”
Source: The Movechannel