Landlords look to grow portfolios in 2012

by Sarah Ashcroft

Landlords will need to take even greater care with their paperwork as they expand their portfolios next year. With more properties to manage, landlords must take extra care to draw up documents, such as a tenancy agreement or property inventory form.

According to Paragon, landlords are feeling increasingly positive about the prospects for the private rented sector (PRS) in 2012 and will be investing in their property portfolios in the coming months.

The buy-to-let lender reports more than a fifth (22 per cent) of the landlords that took part in the survey expect to purchase additional properties in the next 12 months. Just eight per cent, on the other hand, are considering reducing their stock. The average property portfolio size in the second quarter of 2011 was 12, which climbed to 13 in Q3.

In addition, the research found that terraced houses remain the most popular type, with 65 per cent of landlords owning at least one. This was followed by 58 per cent owning a flat, 48 per cent a semi-detached house and 24 per cent a House of Multiple Occupancy (HMO).

John Heron, Paragon Mortgages managing director, said: "This is an interesting time for the PRS as landlords are experiencing very high levels of tenant demand as other areas of the housing market come under increasing strain.

"Looking at the year ahead, I am pleased to see that landlords are expecting to add to their portfolios as there is no sign that tenant demand is going to slow in 2012 and to ensure the PRS can withstand further demand, there needs to be increasing investment in PRS stock."

David Lawrenson, private rented sector expert at, agrees that most landlords are looking to expand at the moment. He said landlords are "quite confident" and the upward pressure on rents will only add to this optimism.

Terrie Alafat, director of housing growth and affordable housing at Communities and Local Government, told the National Landlords Association's annual national conference that it is an "exciting time" for the PRS.  

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Published on: November 30, 2011

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