The rise of the landlord millionaire
Research published by Paragon Mortgages shows the remarkable growth of the buy-to-let business in just ten years.
The average professional buy-to-let investor now owns 12 properties, usually flats or houses in city centres, worth £1.54m.
To qualify as a 'professional', they have to own at least three properties and have been renting them out for at least three years.
According to Paragon Mortgages’ latest buy-to-let trends survey, portfolios are expected to grow by 3.4% over the next year, while yields are set to rise from 6.06% to 6.13%.
Paragon Mortgages’ managing director John Heron commented: “Buy-to-let has come of age early. While residential property investment was not a new concept when ARLA coined the term ‘buy-to-let’ in 1996, it has already established itself as an important, discrete business sector.”
“There is a much better understanding now of the vital role played by the private rented sector in providing accommodation to many people, particularly as the role of council housing has dwindled. It meets the housing needs of a wide variety of different types of person, including students, young professionals and first jobbers, key workers, foreign migrants, and families on benefit.”
Portfolio size is up 7.3% in value terms and 4.4% in numerical terms over the past quarter, pointed out John Heron. “We have seen a significant pick-up in investor activity in 2006, as landlords grow their portfolios in response to a clear increase in demand for rented homes,” he said.
In the survey 91% of landlords reported that tenant demand is on the rise or stable, and only 7% said it was declining. Respondents with a positive outlook outnumbered those with a more negative viewpoint by 13 to 1.
As a result, expectations as regards rental yields are positive, expected to go up from 6.06% to 6.13% over the next year.
“Not surprisingly,” said John Heron, “this translates into enhanced investment activity. Landlords plan to grow their portfolios significantly over the next 12 months, and all the evidence points to them continuing to increase their involvement in the years to come on the back of rising demand and rising yields.”
The Centre for Economics and Business Research forecasts 40% growth in the private rented sector over the next ten years, equivalent to around a million homes. “Investors are set to capitalise on this opportunity and provide much needed homes to more than 10% of the population,” concluded Heron.
Research published by Paragon Mortgages shows the remarkable growth of the buy-to-let business in just ten years.
The average professional buy-to-let investor now owns 12 properties, usually flats or houses in city centres, worth £1.54m.
To qualify as a 'professional', they have to own at least three properties and have been renting them out for at least three years.
According to Paragon Mortgages’ latest buy-to-let trends survey, portfolios are expected to grow by 3.4% over the next year, while yields are set to rise from 6.06% to 6.13%.
Paragon Mortgages’ managing director John Heron commented: “Buy-to-let has come of age early. While residential property investment was not a new concept when ARLA coined the term ‘buy-to-let’ in 1996, it has already established itself as an important, discrete business sector.”
“There is a much better understanding now of the vital role played by the private rented sector in providing accommodation to many people, particularly as the role of council housing has dwindled. It meets the housing needs of a wide variety of different types of person, including students, young professionals and first jobbers, key workers, foreign migrants, and families on benefit.”
Portfolio size is up 7.3% in value terms and 4.4% in numerical terms over the past quarter, pointed out John Heron. “We have seen a significant pick-up in investor activity in 2006, as landlords grow their portfolios in response to a clear increase in demand for rented homes,” he said.
In the survey 91% of landlords reported that tenant demand is on the rise or stable, and only 7% said it was declining. Respondents with a positive outlook outnumbered those with a more negative viewpoint by 13 to 1.
As a result, expectations as regards rental yields are positive, expected to go up from 6.06% to 6.13% over the next year.
“Not surprisingly,” said John Heron, “this translates into enhanced investment activity. Landlords plan to grow their portfolios significantly over the next 12 months, and all the evidence points to them continuing to increase their involvement in the years to come on the back of rising demand and rising yields.”
The Centre for Economics and Business Research forecasts 40% growth in the private rented sector over the next ten years, equivalent to around a million homes. “Investors are set to capitalise on this opportunity and provide much needed homes to more than 10% of the population,” concluded Heron.
posted by tony at 5:59 PM
0 Comments:
Post a Comment
<< Home