Buy-to-Let opportunity as families rely on Private Rented Accommodation, suggests research
Research by specialist buy-to-let mortgage provider, Paragon, shows there is a growing demand for semi-detached and detached buy-to-let properties as more and more families are relying on private rented accommodation (PRS).
Previously, landlords focused their attentions on flats and terraced houses as the majority of their market consisted of young couples and singles. However, as lending conditions remain strict, the family market has increased significantly prompting buy-to-let investors to turn their attention to semi-detached and detached houses.
Of the landlords surveyed, 41 per cent are planning on purchasing semi-detached properties in Q3, while 22 per cent intend to buy detached properties. This is up from 28 per cent for semi-detached and 9 per cent for detached in Q2.
Nigel Terrington is the Chief Executive of the Paragon group. He said:
“It is interesting to see more families relying on the PRS and this is certainly a trend which I expect to stay.
“Young couples and single person households will continue to account for a large proportion of the PRS, but I think over the next few years we will see more families making use of the flexibility and affordable accommodation that the PRS provides.
“With a rising UK population, which is set to grow from 62.3m today to 65m in 2016, landlords need to react quickly to a changing tenant demographic as otherwise demand will most certainly exceed supply quite considerably.”¹
Content correct at time of publication