Landlords expecting strong year in buy-to-let sector

Over half of landlords are predicting a strong year for tenant demand as a cooling housing market increases demand for buy-to-let properties.

New figures predict that 54 per cent of landlords expect tenant demand to increase over the coming year with 36 per cent expecting it to remain stable.

Research from Paragon indicated that just five per cent of landlords thought that tenant demand would decline.

"We have consistently said that buy-to-let has strong counter-cyclical qualities and we are now seeing concrete evidence of this.

John Heron, managing director of Paragon Mortgages said that potential homebuyers could be postponing decisions because they felt uneasy about market situations.

He said that increased demand for tenancy agreements from students and immigrants, as well as people who rent as a lifestyle choice, is putting pressure on the private rented sector.

As a result, Mr Heron expects yields to rise as demand grows.

Published on: June 30, 2008

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