Research of almost 900 landlords has found that, for the first time in four years, a majority now say they plan to expand their portfolios compared to those who intend to reduce.
Paragon's research highlighted that when asked about their portfolio intentions over the next 12 months, 19% of landlords intend on investing in property.
Landlords already managing larger portfolios are most likely to purchase with 31% of those with eleven to nineteen properties and 28% of those who manage twenty or more intending on expanding.
Differences in planned purchase activity also exist regionally. Above-average proportions of landlords operating in the East Midlands and North East indicated that they will invest in the future, at 26% and 24% respectively. Despite being the area with the highest proportion of landlords reporting high tenant demand, Wales is most likely to see private rented sector property sold after 28% of surveyed landlords revealed that they plan to divest in the next twelve months.
Less than one fifth, 17%, of landlords intend on selling at least one of their properties over the course of the next year. This is a drop from the previous two quarters and marks a return to the same level seen in quarter two 2020, the time when lockdown restrictions were announced in the UK.
Richard Rowntree, Managing Director for Mortgages at Paragon said: “News that for the first time in over four years more landlords are intending on buying than selling is fantastic. This is because not only is it good for the industry but, more importantly, it’s good for tenants. More investment in the private rented sector contributes to higher standards, a moderation of rents and more choice for the millions who rely on the private rented sector for flexible, affordable housing.
“During the uncertainty of the past year or so, the role of the PRS has become increasingly important, evidenced by the extremely high levels of demand we have seen for some time now, it’s great to see landlords are responding to this.”