A recent study by major buy-to-let lender, Paragon Mortgages, found an increase in borrowing by first-time landlords as compared to the same time period last year.
Similarly, the percentage of business coming from landlords looking to grow their rental portfolios also increased.
John Heron, director of Paragon, said: “It would seem that an investment in property is increasingly attractive against a background of low returns on cash and volatility in global markets.”
“With perceptions shifting in terms of the improved availability of buy-to-let finance too, the lending industry is in a good place to support the ambitions of both new and experienced landlords.”
Also of interest to new landlords are the increases in average monthly rental costs in England and Wales – up by 3.5% in the 12 months to May 2013, according to LSL Property Services’ buy-to-let index.
David Newnes, director of LSL Property Services, said: “With wage growth so weak compared to inflation and house price growth, it looks like deposits will become less affordable – which will keep demand for rented accommodation high.”
He added that “private renting will become a more and more vital aspect of the economy.”
In line with these findings, we at Reside are seeing local demand for properties increasing significantly. July 2013 was our busiest month ever in terms of properties let, which were up 44% compared to July 2012 and 116% compared to July 2011. New properties added to our website also rose by 33% in July 2013 compared with last year.
Given also that rent arrears and voids are in decline, according to the National Landlords Association, this suggests that now is an excellent time for new landlords to consider investing in rental properties.
