Landlords capitalise on strong tenant demand looking forward to 2012.
Posted on Thu, Feb 02, 2012 @ 04:04 AM
Research conducted by specialist buy-to-let lender Paragon Group has revealed that landlords are expecting tenant demand to continue to grow this year.
More than half (56%) of the landlords who took part in the lender’s latest quarterly survey said that they expect tenant demand to either grow or boom, compared with 45% who were asked the same question at the end of 2010.
Only 6% of those questioned thought that tenant demand would decline this year.
With the growing tenant demand, the yields that can be earned from buy-to-let investments and fast rising rents many landlords are now capitalising on expanding portfolios. The potential income that can be generated from buy-to-let properties now exceeds the interest savers could expect. This gap is possibly the furthest is has been for some time.
The road ahead for savers is looking bleak with low interests not likely to change. Many savers are now being tempted by this increased income stream that does not compare to savings sitting in the bank.
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The survey also touched on rental income. When asked whether they thought rental income would increase during the next 12 months, 45% of landlords surveyed said it will increase, whereas 53% said that it would remain stable – and only 2% said that it would decrease.
At Martin & Co we can advise you on the maximum rent your buy-to-let properties could generate. For more information on gaining a positive income stream and potential capital growth...
Nigel Terrington, chief executive of Paragon Group, said: “It is no surprise that landlords are expecting a healthy level of tenant demand.
“With the success of 2011 to build on, I believe the private rented sector will continue to perform and provide a valuable tenure choice for even more people in 2012.