Young families and couples 'are ideal tenants'

by Sarah Ashcroft

The ailing UK economy and increased financial pressure placed on mortgage applicants in the housing market have driven a change in the type of people looking to move into a rented home, new research has revealed.

A study carried out by lender Paragon Mortgages and published by Your Money has highlighted young couples and families with children as the groups who are leaning more towards signing a rental agreement during the current economic climate.

According to researchers, 57 per cent of property owners let apartments and houses to men and women setting up their first dwelling together, while families with little ones are also becoming commonplace in rented homes.

In addition, young singles who are flying the nest for their first time are serviced by 49 per cent of landlords.

Paragon Mortgage's BDRC Continental Landlord Panel found nearly 60 per cent of proprietors own terraced properties, 53 per cent flats and 44 per cent have semi-detached homes in their portfolio.

It was also discovered that property owners in the run-up to the third quarter increased the size of their collections by 1.8 buildings, representing a fall from the previous three months.

Stark differences between the performance of rental markets across the country were also noted by analyst, with those in the north-east currently holding the largest portfolios at an average of 22.8 dwellings, followed by east of England owners with 13.5.

Commenting on the results, John Heron - managing director of Paragon Mortgages - said: "All the market data is telling us that demand for rented property remains very high and in key areas is outstripping supply by some margin.

"This survey indicates clearly that landlords are responding by adding property to their portfolios but the market still needs more if we are to see affordability improve for renters."

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Published on: December 5, 2012

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