Research shows landlord portfolios increased by 10.5%
The size of the average buy to let property portfolio grew in the third quarter of 2013, according to recent research by a specialist buy to let lender.
Average portfolio increased by 1.4 properties betwen Q2 and Q3
Paragon Mortgages reported that the average portfolio increased from 13.3 properties in Q2 to 14.7 in Q3, representing a growth of 10.5% for the average UK landlord.
Help to buy scheme could increase competition
In addition, landlords anticipate a modest growth in portfolio size of 0.7% in the coming 12 months – a small projection, perhaps tempered by the knowledge that competition for new property will heat up towards the end of the year thanks to the early start of the government’s ‘Help to Buy’ scheme.
Landlords report strong demand for rental
Of particular note is the overwhelming positivity among landlords about the state of the rental market; 91% of landlords described tenant demand levels as stable or growing, and the average void period disclosed was 2.9 weeks (with an average tenancy length in the UK of 20 months, this amounts to a manageable 1.7 weeks per year). The average void length in Q2 was 3.0 weeks, or 1.8 weeks per year.
Fewer than half of landlords reported satisfaction with the availability of buy to let finance in Q3. Only 37% deemed finance to be ‘reasonably available’, though this was a significant improvement over the 25% in Q2, demonstrating positive expansion and accessibility in the buy to let market.