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  1. Paragon PRS Trends Q3 2015 The full report has some charts etc. but I pasted the summary and the section about the response to the proposed budget changes here http://www.paragon-group.co.uk/file_source/Files/MAIN/pdf/PRS%20Reports/PRS%20Trends%20Q3%202015.pdf "Paragon Mortgages latest PRS (Private Rented Sector) trends data report paints a picture of a stable market. Yields have seen modest improvements and void periods, the average amount of time PRS properties spend unoccupied, are at historic lows. More than half of those landlords surveyed report steady tenant demand over the quarter, while 40% said tenant demand was either ‘growing’ or ‘booming’. The percentage of respondents expecting tenant demand to remain stable over the coming 12 months, or grow, has also increased from 85% to 89%. The latest data also shows that average yields have grown over the last three months from 6.3% to 6.4%. This improvement is in line with steady growth seen throughout 2015. In another key indicator of confidence that the PRS market will remain stable, landlords indicated that they expect yields to remain stable and maintain current levels over the coming 12 months. On the direct question of whether or not landlords intend to purchase properties over the coming 12 months, the figures again show a steady market, and a slight increase in optimism. Those intending to buy are up from 16.8% to 18.4%. Reflecting the overall stability of the market, however, landlords on average expect the number of PRS properties in their portfolio to be the same as they are currently in 12 months’ time. Void periods remain historically low at just below 2.6 weeks. This could be a reflection of the changing demographics of those choosing to live in the PRS. The most recent data shows an increase in the numbers of families with children moving into the PRS, and a corresponding decrease in young couples without children and single professionals. But despite the changing makeup of the tenant population, demand for longer-term rental agreements remains relatively low. These demographic changes also appear to be reflected in the on-going buying intentions of landlords who are investing more in traditional family housing. On the question of how landlords view their portfolios compared with three months ago, levels have remained stable throughout 2015 and continue to do so in the latest data. Those feeling a little more optimistic are up by 1.6% and a majority (58%) report that optimism levels are unchanged since the last quarter. So, in all, this quarter’s results present a picture of a PRS sector that is neither booming nor contracting, but rather growing steadily. There is room for improvement and it will be interesting to see, in future reports, if macroeconomic concerns about the stock market and the Eurozone, and changes in tax and regulation such as those recently announced by the Chancellor, have an impact on sentiment. For the time being however, landlords are seeing steady growth and they expect to see this continue as demand for quality PRS accommodation remains buoyant. " Specifically on the tax changes, the survey said "INCOME TAX RELIEF CHANGES In July the Chancellor announced that in future, tax relief on buy-to-let mortgages would only be available at the basic rate of 20%. We asked landlords what impact this would have on their portfolio strategies. While more than half (47%) of landlords indicated that they wouldn’t be making any changes to their portfolios as a result of income tax changes, a significant 31% said they may buy fewer, or no further properties as a result of the changes. A further 18% indicated that they would consider selling some properties. In terms of managing the extra costs incurred as a result of the income tax changes, 71% of landlords indicated that they would increase rents to compensate for increased costs, while 14% said they would seek to recoup the full increase in costs through higher rents. "
  2. Corporate BTL loans becoming a bit more mainstream? http://www.paragon-group.co.uk/file_source/Files/MAIN/pdf/Press%20Releases/2015/Paragon%20Premier%20final.pdf  Buy-to-let lender launches pilot for new product range  Products include enhanced criteria for professional landlords  Specific features designed for limited companies Paragon Mortgages are launching a new product range aimed at professional landlords with larger-scale portfolios, which will be available through an exclusive distribution network. ‘Paragon Premier’ is a range of products designed to meet the needs of landlords with larger portfolios. The product range features enhanced criteria and includes a range of lifetime trackers starting at 4%, three year fixes starting at 3.55% and five year fixes at 4.50%. The new product range will include loan-to-values of up to 80%. John Heron, Managing Director of Paragon Mortgages, said: “These new products are designed for top-end professional landlords, specifically those that hold their portfolios in special purpose companies. “As this is a pilot scheme for more complex buy-to-let cases, we are working with a limited number of specialist intermediaries with a proven track record in the market. Whilst we have been working on this development for some time, we do expect that interest in the scheme will be boosted by the proposals to limit landlord tax relief in the Summer Budget. This latest initiative is part of our ongoing strategy to ensure that we have a comprehensive proposition for residential property investors.”
  3. http://www.paragon-group.co.uk/file_source/Files/MAIN/pdf/Press%20Releases/2015/FINAL%20-%20Tenants%20satisfied%20with%20length%20of%20tenancy.pdf RESEARCH IDENTIFIES HIGH LEVELS OF TENANT SATISFACTION  Eight out of ten tenants are satisfied with their current landlord  Only 5% of tenants have been refused a longer-term tenancy  65% of tenants believe their rental payment represents ‘good’ or ‘very good’ value for money New research commissioned by Paragon Mortgages has revealed more positive attitudes among tenants towards private renting. The Q2 tenant market analysis, carried out by BDRC Continental, reported a rise in tenant satisfaction with 80% satisfied with their current landlord and 87% of tenants now regarding their rented property as their “home”, rather than a short-term arrangement. The research also highlighted that the average duration of tenants living in their current rented property in Q2 was seven years, with the typical total stay in the PRS being 12 years. When asked about their long-term housing plans, more than a third (35%) of participating tenants intend to remain within the PRS. Almost a quarter (24%) of tenants intended to buy a house in the future, with the proportion of respondents citing the unaffordability of housing as the reason for renting privately increasing from 69% to 74%. The Q2 research also reported 65% of tenants believe their rental payment is, in terms of value for money, either ‘good’ or ‘very good’. John Heron, Managing Director of Paragon Mortgages, said: “This research provides a valuable insight into the sector. There are many surveys of landlords and many academic reports on the PRS. There are, however, too few surveys that poll tenants directly on their experience of renting privately. “This survey has identified high levels of tenant satisfaction and an appreciation of the good value that rented accommodation can offer across the country. It is more disappointing though to see that affordability constraints are impacting negatively on future choices in housing with less than a quarter of tenants expecting to buy their own home in due course.” The survey was based on a sample size of 800 respondents sourced from a consumer panel. It was designed to be demographically representative of tenants privately renting across the UK, and forms the second issue of an ongoing series in tenant surveys conducted by BDRC Continental.

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