Buy to Let Portfolio Growth Slows in Q3

10 December 2012 Categories: News

Buy to Let Portfolio Growth Slows in Q3

New research conducted by BDRC Continental has shown that landlords have slowed the rate at which they have added new properties to their rental portfolios as this year has progressed. Quarter 3 showed a drop of over 30% in terms of new property purchases when compared to Quarter 2, and similarly Q2 showed a drop of around the same percentage when compared to Q1. This means that landlords added an average 1.8 properties to their rental portfolios during the third quarter, but 2.6 properties during Q2.

The news has come as a surprise to industry experts who predicted a rise in the number of property purchases as the year went on, simply because of the continual high demand for rental property. Demand still outstrips supply in many areas of the country but it seems landlords are remaining cautious with regards to new purchases.

John Heron, managing director of Paragon Mortgages commented “All the market data is telling us that demand for rented property remains very high and in key areas is outstripping supply by some margin,”.

“This survey indicates clearly that landlords are responding by adding property to their portfolios but the market still needs more if we are to see affordability improve for renters.”