Survey Finds UK Landlords Optimistic about On-going Rental Demand

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3rd July 2013 16:02 - Housing

Housing market research commissioned by Paragon Mortgages has revealed that UK landlords continue to be optimistic - demand for private rented property has remained high during the second quarter of this year.

At 93%, almost all the landlords who took part in the PRS Trends survey reported that tenant demand is either stable or growing.

Furthermore, over the next 12 months landlords are expecting little change in the strong demand for rental property - 86% believe it will continue to grow or at least remain stable, while just 6% think demand will see a decline.

The survey respondents also reported an increase in average rental yields, rising to 6.4% from 6.2% in Q1. Professional landlords saw an average yield of 6.6%, however private investor landlords saw a higher increase from 4.7% to 5.2%.

In addition, the study demonstrated a boost in buying intentions amongst landlords. A total of 19% are planning to make property purchases, representing a rise from 13% in the first quarter. The most popular property investment choice currently is terraced houses, followed by flats and maisonettes.

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