Latest research commissioned by Paragon Mortgages has revealed the top factors that landlords consider when getting ready to make a buy-to-let property purchase.Paragon conducted a survey...
Latest research commissioned by Paragon Mortgages has revealed the top factors that landlords consider when getting ready to make a buy-to-let property purchase.
Paragon conducted a survey of more than 1,000 NLA landlords and found the most common factor when selecting a potential rental property will be a landlord's own knowledge of the area, with 86% of landlords reporting this is at the top of their checklist.
More than two thirds (68%) of landlords said that strength of tenant demand in the local area was an important factor, and 63% said that local rent levels were also a big consideration.
Other important factors landlords sited were the prospect of capital growth (56%), proximity to local transport connections (55%) and future development plans in the area (37%).
Almost three quarters (74%) of landlords planning to make property purchases said they would be looking for one near their home, and just 10% said that they would be prepared to buy further afield, but only up to 100 miles.
John Heron, Managing Director of Paragon Mortgages, said: “Whilst the factors landlords have selected may not be entirely surprising, their feedback is important nonetheless. From time to time landlords get a bad press. What this research shows, and what we already know, is that the majority of landlords view the running of their portfolios as a business. They buy property only after careful consideration, and have a very strong preference for investing in their own local communities.
The buy-to-let sector continues to perform well, with landlords feeling more confident. In fact, 25% of the landlords we surveyed are planning to buy further rental property in the next 12 months alone.