Private rented sector finely balanced says Paragon Mortgages
The latest Paragon Mortgages Private Rented Sector (PRS) Trends report for Q1 headlines ‘A Long Road Ahead’.
The highlights in the Paragon Mortgages Q1 2017 PRS Trend report are: Average portfolio size stable at 13 properties, despite tax changes and rising stamp duty. Landlords expect little change in portfolio size over the next 12 months. Average LTV ratio is 35%, continuing downward drift in gearing since 2013. Increased understanding of tax changes and implications – 78% of Landlords, up from 71%.
John Heron, Managing Director, Paragon Mortgages, said: “Almost two years on from the 2015 Summer Budget and the Government’s move to create “a more level playing field” between landlords and homeowners, April 2017 is finally here and the tax relief changes on buy-to-let mortgage interest have started to be implemented – although the full effect willnot be felt until 2021.
“Looking back on the 21 months since the then Chancellor George Osborne’s announcement, it’s encouraging to see the Private Rented Sector (PRS) has not been negatively impacted to the degree that had been widely predicted, despite some turbulence.
“However, we remain cautious, as landlords will not be fully impacted for some years yet and, whilst we have been able to track a modest recovery in confidence since 2015, the sector is still some way off its peak; the PRS is finely balanced and will remain so for some time”. To read more see below.
To read the all the comments from John Heron in the complete Paragon Mortgages PRS Trend report click here.
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