Paragon spoke to 500 landlords with aspirations to develop property portfolios about what is driving them, their influences and how they plan to grow their property business.
It’s vital that the UK has a thriving private rental sector (PRS). Everybody who needs or wants to rent a home should have access to a good quality property at a reasonable price. Until recent years, the market has worked well. But in a post-pandemic world, we are experiencing a severe imbalance between supply and demand. Recent data shows that tenant demand is twice the level of pre-Covid, whilst supply is down by a third. Buy-to-let is coming up to its 30th anniversary and it is a UK success story. With approximately £300 billion in buy-to-let mortgages outstanding across two million loans, it is a mature financial product that has weathered many economic storms. However, those early landlord pioneers of the buy-to-let market in the mid-90s are now coming to an age where they may be looking to downsize their portfolios or sell entirely in retirement. Sadly, some are no longer with us. The PRS therefore needs a consistent flow of new landlords coming into the sector, those with aspirations to develop the portfolios of the future. Our analysis of industry data shows that over the past 10 years, the average age of landlords purchasing a buy-to-let property with a mortgage has fallen. Read the full report here.
Richard Rowntree
Paragon Bank – Managing Director of Mortgages
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