Landlords' average portfolio size increases
More landlords could be needing to use professional property management services to help them look after expanding portfolios.
According to a new survey by buy-to-let mortgage provider Paragon, landlords are feeling increasingly positive about the prospects for the private rented sector (PRS) in 2012 and are looking to invest in their portfolios in the coming months.
Of those landlords polled, more than a fifth (22 per cent) said that they expect to purchase additional properties in the next 12 months, while just eight per cent are considering reducing their stock.
Rising confidence in the buy-to-let sector has already begun to take effect, with the average portfolio size increasing to 13 properties in the third quarter of 2011, up from 12 in the previous quarter.
The most popular type of property was found to be terraced houses, with 65 per cent of landlords owning at least on.
This was followed by flats (58 per cent), semi-detached houses (48 per cent) and houses of multiple occupancy (24 per cent).
"This is an interesting time for the PRS as landlords are experiencing very high levels of tenant demand as other areas of the housing market come under increasing strain," said John Heron, managing director of Paragon Mortgages.
"Looking at the year ahead, I am pleased to see that landlords are expecting to add to their portfolios as there is no sign that tenant demand is going to slow in 2012 and to ensure the PRS can withstand further demand, there needs to be increasing investment in PRS stock."
The poll also revealed that the vast majority of landlords (77 per cent) currently feel confident over the future of the PRS, while 57 per cent rated the prospects for the sector in the next 12 months as very good or good.
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