The latest landlord research by Paragon Mortgages has revealed a marked increase in the number of landlords on the look-out for a semi-detached property amongst those expecting to purchase buy-to-let property soon, up from 23% in Q4 2014 to 35% in Q1 2015.
The specialist lender’s Private Rented Sector Trends survey, which has been tracking landlord confidence and views on the buy-to-let market for 13 years, also reported that the proportion of landlords looking to buy terraced property had fallen from 67% in Q4 2014 to 35% in the most recent survey.
This sharp turnaround in demand for these two different property types results in a more even distribution of interest across the broad spectrum of property types from landlords than previously. Overall, among those looking to buy, 30% of landlords expressed interest in adding a flat to their portfolio, 35% were on the look-out for a semi-detached house, 35% for a terraced house and 22% said they were considering more specialist units such as multi-unit blocks and HMOs.
The Q1 2015 report also finds a higher proportion of landlords are optimistic about the prospects for their property portfolios, with over one quarter (27%) feeling positive about the future and an increase in those expecting to buy sometime soon, up from 15% to 18%.
John Heron, director of mortgages at Paragon, said: “The growing proportion of landlords looking to purchase buy-to-let property sometime soon points to continued, steady growth in the private rented sector.
“Meanwhile, a closer look at interest levels for different property types suggests landlords are taking a broader perspective in order to cater for the wider range of households looking for a suitable home in the rental sector.”