Landlords work harder to ensure properties are suitable for their preferred tenant type, more than they do to achieve maximum profits.
That’s the result of research by Paragon Bank.
The research into landlord investment strategies, undertaken for Paragon’s Landlord Report 2022, found that when expanding portfolios, the top priority is ensuring that properties are suitable for their preferred tenant type, chosen by just over half, 51 per cent, of the 621 landlords surveyed.
This is followed by familiarity with the local area, chosen by 48 per cent of landlords, and close proximity to their own homes, a priority for four in 10.
Financial aspects of investments were less important to landlords. The potential for capital gains is prioritised by 37 per cent, purchasing for high yields a primary strategy for 32 per cent and low purchase price a key factor for 31 per cent of landlords.
The bank’s Richard Rowntree - managing director for mortgages - ays:“It’s interesting to see that considering how properties meet the needs of tenants is central to landlords’ investment strategy and more important than generating high yields or capital appreciation.
“This is perhaps at odds with the negative perception of landlords who are sometimes viewed as placing profits above people.
“Highlighting such misconceptions and helping people to better understand buy-to-let investors is what we’ve set out to do with our Landlord Report, something we hope will be valuable for brokers and others within the mortgage industry.”
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