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TODAY'S OTHER NEWS

Landlords confident about 'growing' and 'booming' tenant demand

A higher proportion of landlords believe tenant demand for rental properties is 'growing' or 'booming', according to Paragon.

The buy-to-let lender's latest report shows that 29% of landlords are optimistic about tenant demand this quarter, up from 21% in Q1 2019.

The level of landlords seeing booming or growing rental demand is currently around the level it has maintained since midway through 2017 (roughly 30%).

The report also reveals that the average portfolio is now 13.2 properties, worth £1.82 million - a record value for the second consecutive month.

There remains a cautious approach among investors, however, with average gearing remaining historically low at 33% loan-to-value and mortgage payments as a proportion of rent unchanged at 25%.

Despite confidence about tenant demand, landlords' market optimism remains historically low at 11%, down from 13% the previous quarter.

The drop in landlord confidence is now some 30% below the high of 41% recorded in the first quarter of 2014.

"A clearer picture is starting to emerge of the impact that multiple government and regulatory interventions are having on the PRS," says John Heron, Paragon's director of Mortgages.

"In broad terms, landlords have been buying fewer properties and selling more at a time when there has been a resurgence in tenant demand."

"It is widely anticipated that this will lead to reduced choice and higher rents for tenants. This is probably not the outcome that policy makers were looking for," he says.

You can see the full report here.

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