by Daniel Jones
Landlords in the UK are largely of the belief that 2014 will be an extremely good year for them, with 33 per cent expecting an increase in the net value of their property portfolios.
New research by Paragon Mortgages has found that there is a renewed sense of optimism sweeping through the owners of rental property at the moment.
It discovered that around a fifth of landlords are planning to buy more property in the first quarter of the new year and 38 per cent are feeling optimistic about the prospects of the homes they already own.
Optimism among landlords has been at an all-time high during the second half of 2013 and this positive mindset is set to continue into 2014. After 2008-09 witnessed an historic low in optimism about the future value of rental property, it's good news that many landlords now feel that their buildings will go up in worth over the next 12 months.
John Heron, director of mortgages at the company, said that there is no doubt that 2013 has been a very good year for the buy-to-let sector and landlords are increasingly active in the market.
There has been a steady rise in the levels of optimism found in the sector and he noted that the landlords who have a mortgage with Paragon have been keen to reveal their positivity heading into the new year.
While landlords are feeling extremely positive, Mr Heron sounded a note of caution as he said any potential growth of the buy-to-let lending market to £20 billion would only represent a material level of growth in comparison with 2012.
"This only takes us back to the level of buy-to-let lending that we had ten years ago and over that period the private rented sector has increased by 80 per cent. Any talk of boom conditions in the buy-to-let market would appear to be premature indeed," he explained.
Nonetheless, it seems that now is a good time for landlords to buy and many will do so in the coming months.
Published on: December 27, 2013