Paragon Bank

Almost one in five landlords set to invest in property this year

For the first time in four years, the proportion of landlords that plan to expand their portfolios is higher than that which intend to reduce them, Paragon Bank has revealed.

According to the lender’s survey of almost 900 landlords, carried out by BVA BDRC, 19% of landlords intend on investing in property over the next 12 months.

Landlords already managing larger portfolios are most likely to purchase, with 31% of those with 11-19 properties and 28% of those who manage 20 or more intending to expand.

Less than one-fifth (17%) of landlords aim to sell at least one of their properties over the course of the next year.

This is drop from the previous two quarters and marks a return to the same level seen in Q2 2020, the time when lockdown restrictions were announced in the UK.   

The study also revealed regional differences in planned purchase activity.

Above average proportions of landlords operating in the East Midlands and North East indicate that they will invest in the future, at 26% and 24% respectively.

Despite being the area with the largest share of landlords reporting high tenant demand, Wales is most likely to see private rented sector (PRS) property to be sold after 28% revealed that they plan to divest in the next 12 months.

Richard Rowntree, managing director for mortgages at Paragon Bank (pictured above), said: “News that more landlords are intending on buying than selling is fantastic. 

“This is because not only is it good for the industry but, more importantly, it’s good for tenants. 

“More investment in the PRS contributes to higher standards, a moderation of rents and more choice for the millions who rely on the private rented sector for flexible, affordable housing. 

“During the uncertainty of the past year or so, the role of the PRS has become increasingly important; evidenced by the extremely high levels of demand we have seen for some time now, it’s great to see landlords are responding to this.”

Leave a comment