12 May

Demand for semi-detached investment properties on the rise

Demand for semi-detached investment properties on the rise

Many UK buy-to-let landlords are interested in semi-detached homes rather than terraced properties, claims new research.

A survey by Paragon Mortgages found demand for terraced rental investment opportunities has fallen over time, with more landlords looking for suitable semi-detached homes to offer tenants.

The number of landlords considering purchasing semi-detached property has increased from 23 per cent in the fourth quarter of 2014 to 35 per cent in the first three months of 2015.

Paragon Mortgage's Private Rented Sector Trends survey showed the number of potential buyers looking at terraced property has fallen from 67 per cent to 35 per cent in the same period.

It is though buy-to-let investors believe semi-detached properties will be more appealing to a greater number of potential tenants, meaning rental income is more favourable and it is less likely to be vacant for an extended time.

Overall, the study found a positive feeling amongst buy-to-let investors, 30 per cent of landlords hoping to add a flat to their portfolio and 22 per cent expressed an interest in specialist properties such as multi-occupancy homes.

"The growing proportion of landlords looking to purchase buy to let property sometime soon points to continued, steady growth in the private rented sector," said John Heron, director of mortgages at the specialist lender.

He added: "Meanwhile, a closer look at interest levels for different property types suggests landlords are taking a broader perspective in order to cater for the wider range of households looking for a suitable home in the rental sector."ADNFCR-1222-ID-801786993-ADNFCR

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