Tenant demand fuels ambitions for aspiring landlords

Tenant demand fuels ambitions for aspiring landlords

0:01 AM, 29th August 2024, About 3 days ago 12

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Long-term tenant demand and a desire to supplement retirement income are the primary drivers for aspiring landlords seeking to build property portfolios, research reveals.

According to Paragon Bank, the findings highlight a growing trend among landlords who are actively seeking to increase their rental income and build long-term wealth.

Its ‘Next Generation Landlord Report‘ surveyed 500 landlords with up to three properties and ambitions to build larger portfolios.

One key finding is that six in 10 landlords (60%) cited the ongoing demand for rental properties as a major factor in their decision to grow their portfolios.

‘Rental market is set for continued growth’

Paragon’s managing director of mortgages, Louisa Sedgwick, said: “The rental market is set for continued growth, driven by projected population increases of around 10% over the next decade.

“This favourable market outlook is underpinning the investment decisions of aspiring landlords.”

She adds: “The research also demonstrates a clear focus on long-term planning, with over half of landlords building portfolios to support their retirement.

“This indicates a strong commitment to the rental sector and is essential for the overall health of the private rented market.”

Add properties to their portfolios

The report also reveals that more than half of landlords (54%) are looking to add properties to their portfolios as a means of supplementing their retirement income.

And nearly half of respondents (47%) believe that long-term house price growth is a significant driver for their investment decisions.

The BTL lender also found that more than a third of landlords (34%) prefer property as an investment asset over other options.

Landlord’s decision to enter the PRS

The report also highlights the factors that influence a landlord’s decision to enter the PRS with friends and family playing a significant role for many.

Paragon found that 43% of landlords cite them as a primary motivation.

Also, a large proportion of landlords (39%) started renting out their first property by accident, often after purchasing a second home or inheriting property.

When asked why they chose property over other investments, landlords emphasised its tangible nature (67%), wealth-building potential (54%) and the ability to pass it on as an inheritance (53%).


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northern landlord

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10:24 AM, 31st August 2024, About 18 hours ago

Reply to the comment left by Rookie Landlord at 30/08/2024 - 21:24
But it is allowed! That is the point, it could happen to you. Get a bad tenant and you will basically be stuffed, especially if you have a BTL mortgage. It will take months to get them out and while in theory you can get redress for loss of rent, damage and legal costs it hardly ever happens as ex-tenants tend to vanish and if you find them they are skint and you can’t get blood out of a stone. Most Landlords are just grateful to get their property back and just have to suck all the costs up, pick themselves up, dust themselves down, dip deep into their pockets and soldier on or sell up.

NewYorkie

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11:34 AM, 31st August 2024, About 17 hours ago

Reply to the comment left by northern landlord at 31/08/2024 - 10:24
I sold up, and will sell my remaining BTL when I can.

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