Paragon the specialist buy to let lender, has reported from research findings that there has been encouraging activity during the first few months of 2012 for landlords in the (PRS) Private Rented Sector.
A recent trend report from the PRS for Quarter 1 of 2012 collated information from landlords experiences including planned property purchases, tenant activity – enquiries/demand, and their current outlook on the buy to let market.
The views Landlords expressed in terms of current demand from tenants was positive with 44% indicating that demand was increasing and that further increases were expected during 2012.
Findings indicated that current yields were at 6.2% which is a clear indication of strength in the market matching the same figure of Q1 in 2011. Findings also indicated void periods were remaining low, even showing decreases from 2.9 weeks in 4th Quarter 2011 to the current of 2.6weeks.
Out of the landlords who took part in the service a 5th said that they planned to purchase a buy to let property looking forward into Q2 of 2012. Out of those landlords with planned investments 31% were looking to purchase flats/apartments/maisonettes and a massive 46% indicated their intention to purchase terraced properties.
Paragon indicated that the findings of the Trend Survey for Quarter 1 clearly demonstrated that the majority of landlords feel 2012 has been and will continue to become more positive for buy to let landlords. The majority of landlords showing intentions of investment into their portfolios to buy a house is a massive vote of confidence for the market. Many first time landlords have been in a situation where they are contemplating whether to sell a house however these positive signs for the market may change their minds.