Landlords look to purchase properties

Paragon’s Private Rented Sector (PRS) Trends Report for the first quarter of 2012 found landlords reporting an average yield of 6.2%, the same level achieved during Q1 last year.

The survey asked landlords for their views on tenant demand, planned property purchases and their views on the wider buy-to-let market.

Void periods also remained low, decreasing further from Q4 2011, dropping from 2.9 weeks to 2.6 weeks. Smaller-scale landlords saw a slight decrease from 2.7 weeks in Q4 to 2.6 weeks in Q1. Professional landlords saw a bigger decrease, dropping to 2.6 weeks in Q1, from 3 weeks in Q4.

A fifth of the landlords who took part in the survey said that they are planning to purchase buy-to-let property in the second quarter.

46% of those planning to invest are planning to purchase terraced houses and 31% expect to buy flats or maisonettes.

Landlords’ views on tenant demand remained largely unchanged during Q1, with 44% saying tenant demand was growing or booming and 53% saying they expect demand to increase over the next 12 months.

Nigel Terrington, chief executive of Paragon, said: “The findings of the Q1 Trends survey are interesting and show that it has been a positive start to 2012. Landlords are optimistic about the year ahead and are planning to invest in their portfolios.