The company’s Q4 2019 PRS Trends report found that 31% plan to purchase HMOs, up from just 12% in Q3.
HMOs typically offer a higher yield – 6.5% compared to 5.6% across all property types – but they are more complex to manage.
Richard Rowntree, director of mortgages at Paragon, said: “The private rented sector needs to grow to meet increasing levels of tenant demand and it’s clear that portfolio landlords will drive that growth.
“Not only are they looking to build their portfolios, they are also looking at more complex types of property that will deliver higher yields, such as HMOs.”
A quarter of landlords said they plan to acquire flats, with 18% targeting terraced housing.
Some 9% of portfolio landlords – those with four or more properties – plan to add to their portfolio over the next quarter, compared to just 1% of non-portfolio landlords.
Source: Property Wire
Author: Ryan Bembridge
Date: 23rd of January 2020