The majority of landlords are confident in their tenants’ ability to meet their financial responsibilities, new research from Paragon Mortgages suggests.
The lender’s Private Rented Sector Trends Survey for the second quarter of 2015 shows that three-quarters of landlords expect rental arrears to remain unchanged in the next 12 months. This is a 4 per cent rise on the previous quarter and the third successive improvement. Furthermore, the proportion of landlords saying rental arrears would grow remained stable and low at 8 per cent.
The landlords’ improved sentiment is also indicated by the relatively high proportion of people planning to add new stock to their portfolio. Almost a fifth (17 per cent) of landlords said they will buy new properties over the summer.
Terraced properties and semi-detached houses remain the most popular property type with 38 per cent of landlords looking to invest in such properties, followed by 35 per cent who are looking to buy apartments.
John Heron, director of Paragon Mortgages, said:
“Landlords continue to experience strong tenant demand and are keen to add to their portfolios. The positive signals being picked up elsewhere around the economy also seem to have flowed through to the PRS with landlords experiencing low arrears and low, stable voids.”
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