Residential lettings 'benefitting from the crunch'

News Category: Industry News

This article was brought to you by Rentman the premium property management system.

The economic downturn has brought new opportunities in residential property management, a Paragon Mortgages report of the private rented sector has suggested.

A landlord's residential lettings portfolio increased by an average of 12.1 homes to 13.2 during the third quarter of 2008, the study found.

Furthermore, over a third (33.5 per cent) of landlords are experiencing a growth in tenant demand as people switch to renting because tighter restrictions in mortgage lending are making it harder for Britons to afford their own homes.

The research comes after a study of the private rented sector by Business Development Research Consultants showed that 100 per cent of landlords with 20 or more properties in their portfolio are making higher profits since the economic downturn.

Falling interest rates and house prices have brought new opportunities to acquire new homes and generate higher profits, the firm said.

John Heron, managing director of Paragon Mortgages, commented: "There are opportunities for residential property investors with cash to spend to expand their portfolios in the current market and maybe we are starting to see evidence of this."

Buy letting agency software that works.