Landlords 'look to regeneration areas'

News Category: Industry News

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Many landlords are looking to invest in areas in which urban regeneration is planned, new research shows.

The study by the Property Investor Show found that 41 per cent of landlords cited regeneration areas as their preferred locations when looking to expand their portfolio.

Equally, the data found that university towns remain popular for landlords - with one in five looking to become involved in student letting.

Other popular areas for landlords included commuter-belts and city-centres.

"Regeneration areas have significant benefits for those buyers with affordability constraints," commented Nick Atkinson, investment manager for renovation specialists Castle Residential Services.

"Investing in up-and-coming areas means significantly lower purchase prices and the knowledge that ongoing regeneration will help theirinvestment to grow."

Recent figures suggest that landlords have been able to absorb rising interest rates because high demand means that they can increase rents.

Commenting on the research, Nigel Terrington, chief executive of Paragon, said: "The private rented sector continues to expand steadily to meet this growth in demand for accommodation and landlords add to their portfolios in the knowledge that tenant demand is buoyant and rents continue to rise."

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