logo
‘Not enough' landlords to cater to students and immigrants, Paragon boss warns

‘Not enough' landlords to cater to students and immigrants, Paragon boss warns

Independent04-06-2025
There are 'not enough' landlords in the UK to cater to population growth, student towns, and rising immigration, the boss of buy-to-let lender Paragon Bank has warned.
High demand among tenants versus a lack of available homes is pushing up rental prices, Paragon's chief executive Nigel Terrington said.
'The broader issue is that there is probably, in reality, not enough landlords,' Mr Terrington told the PA news agency.
'Demand for rented property is very high – everywhere you go you hear there are 15, 20 people for every rented property that is available and, of course, that's pushing up rents.'
He said the issue was 'broad based' with big UK cities like London being strained as well as student towns.
'The potential is that it gets worse from here because the UK population is expected to grow by another four million people by 2032, and it is largely going to come from immigration,' Mr Terrington told PA.
'Immigrants tend to come into the UK and will rent, rather than buy.
'So it puts more pressure on the rental market and therefore we need greater levels of landlord formation, rather than keeping it stable.'
He said landlords, like other UK businesses, need 'certainty and clarity' following events such as Brexit, a new government, and interest rates being hiked.
The remarks come as Paragon revealed new mortgage lending surged by a quarter over the six months to the end of March to £810 million, compared with the same period a year ago.
Activity was buoyed by buyers taking advantage of more generous stamp duty relief before the April deadline.
Mr Terrington also pointed to a wider shift from 'amateur' landlords to professional landlords, who tend to own more than five properties, which he said was 'playing into our hands' because of the lender's customer base.
Paragon's pre-tax profit soared by nearly 27% to £140.1 million for the half-year.
Meanwhile, the bank boss called on the Government to give landlords enough time to plan for the Renters' Rights Bill, which is currently going through Parliament.
The proposed legislation seeks to introduce several measures including an end to no-fault evictions, stopping bidding wars for tenancies, helping tenants challenge unreasonable rent increases and preventing landlords from demanding more than a month's rent in advance from a new tenant.
Mr Terrington said it would be 'crucial' to have an 'appropriate implementation period' for the potential new laws and that they are communicated sufficiently to both landlords and tenants.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Swinney to press Trump on Scotch whisky tariffs exemption
Swinney to press Trump on Scotch whisky tariffs exemption

The Independent

time22 minutes ago

  • The Independent

Swinney to press Trump on Scotch whisky tariffs exemption

Scotland's First Minister has vowed to press President Donald Trump to exempt Scotch whisky from US trade tariffs. John Swinney said the 'uniqueness' of whisky made in Scotland justified the exemption from the 10% tariff applied on UK exports into the US. The First Minister, who is due to hold talks with Mr Trump during his ongoing visit to Scotland, said the tariffs were currently costing the local whisky industry £4 million a week. 'Tariffs are very important for the Scottish economy and obviously scotch whisky is a unique product,' he told BBC Breakfast. 'It can only be produced in Scotland. It's not a product that can be produced in any other part of the world. So there's a uniqueness about that, which I think means there is a case for it to be taken out of the tariffs arrangement that is now in place. 'Obviously the trade deal with the United States provides a degree of stability for economic connections with the United States, but the application of tariffs is increasing the costs for the Scotch whisky industry. 'So one of my objectives will be to make the case to President Trump that Scotch whisky should be exempted from those tariffs. 'It's a product that is uniquely produced in Scotland, and it's a product that is much welcomed and supported within the United States. And I think there's a really good case for exempting Scotch whisky, and this is an opportunity that I have to put that case to President Trump on behalf of the Scotch whisky industry, which is a significant part of the Scottish economy. 'And the tariffs just now are costing the industry about £4 million each week, so it's a very significant burden on the industry. It would help growth and development within the Scottish economy if we could secure that deal. And, obviously, I'll be using every opportunity I have to try to put that across to President Trump.' Mr Trump's five-day visit to Scotland is largely a private one that has seen the president play golf at his course at Turnberry in Ayrshire ahead of opening a new course at his property in Aberdeenshire on Tuesday. Mr Swinney said the final cost of the policing the visit has yet to be worked out. 'Obviously, we're working very closely with Police Scotland and the Scottish Police Authority about the arrangements for this visit,' he said. 'The security arrangements have gone well since President Trump arrived on Friday, and that's as it should be, because we've got an obligation to make sure that when we have major international visitors, when they come to Scotland, that they are protected and able to go about their activities. Pressed to reveal the bill, Mr Swinney added: 'All of that will be worked out and we'll address that with Police Scotland and the Scottish Police Authority, and we're talking to the United Kingdom government about these questions, but it's important that we have a secure policing operation. 'It's also important that members of the public who wish to express their point of view, who want to protest about the visit or about other issues, are able to go about their exercise of their democratic right to protest. That's exactly what they've been able to do since Friday, and that's the way it should be.'

Citroen's new SUV is £7k cheaper than a VW Tiguan
Citroen's new SUV is £7k cheaper than a VW Tiguan

Auto Express

time22 minutes ago

  • Auto Express

Citroen's new SUV is £7k cheaper than a VW Tiguan

Citroen has announced pricing for its new C5 Aircross with the flagship SUV set to start from just over £30,000. The C5 Aircross will continue Citroen's 'multi-energy' platform strategy - meaning it'll be offered with a petrol hybrid and all-electric power. The Citroen C5 Aircross comes in the three trim levels you'd find across in Citroen's model range. With the 'Hybrid 145' powertrain, the C5 Aircross starts in You! guise from £30,495, before going up to £33,135 for the mid-range 'Plus' and £35,775 for the top-spec 'Max'. Choose the all-electric version of any of those trim levels and you'll pay an extra £3,570. Citroen says orders are open now with the new car arriving in showrooms from October, although if you can't wait until then you can buy a used Citroen C5 Aircross through our Find a Car service. Advertisement - Article continues below Inside the C5 Aircross you'll find a 10-inch driver's display and a 13-inch 'Waterfall' portrait-oriented touchscreen in the middle of the dash - no matter which trim you go for. The mid-spec Plus gets a 180-degree camera and 19-inch alloy wheels instead of the You! 18-inch rims, while top-spec Max adds adaptive cruise control, dual-zone air-conditioning, matrix LED headlights with adaptive high beams and a 360-degree exterior cameraOnly the top-spec e-C5 Aircross gets a heat pump as standard. The sole petrol engine is the 143bhp 1.2-litre hybrid, while the e-C5 Aicross comes with a 211bhp electric motor and a 73kWh battery that provides 323 miles of range. A 97kWh battery alternative will arrive soon which will increase power to 228bhp and a range of 423 miles, and a plug-in hybrid will also come at a later date. Our dealer network has 1,000s of great value new cars in stock and available now right across the UK. Find your new car… Find a car with the experts Hyundai slashes prices across its entire EV range Hyundai slashes prices across its entire EV range Korean brand acts swiftly to cut prices on all its electric cars, amid confusion over Government's grant scheme Congestion Charge EV exemption removal to generate over £75million per year Congestion Charge EV exemption removal to generate over £75million per year TfL is planning to raise the Congestion Charge to £18, and EV drivers will have to pay too Dacia's baby EV due in 12 months with a tiny £15k price tag Dacia's baby EV due in 12 months with a tiny £15k price tag Dacia's new model will be developed in double-quick time, and it'll be built in Europe to avoid China tariffs

Almost 50,000 firms near collapse amid strain from tax hike, report claims
Almost 50,000 firms near collapse amid strain from tax hike, report claims

The Independent

time22 minutes ago

  • The Independent

Almost 50,000 firms near collapse amid strain from tax hike, report claims

Nearly 50,000 UK companies are on the verge of collapse, with the retail and hospitality sectors facing the most severe impact from rising wage costs. A new report highlights that recent budget measures are placing "immense strain" on small firms across the country. The latest red flag alert from Begbies Traynor reveals a significant 21.4 per cent year-on-year increase in businesses experiencing critical financial distress, reaching 49,309 in the second quarter. Consumer-facing industries have been particularly hard hit, with bars and restaurants seeing a 41.7 per cent surge in distress. Travel and tourism firms recorded a 39 per cent leap, while general retailers experienced a 17.8 per cent jump. Begbies warned that many independent pubs may not possess the necessary scale to withstand these mounting pressures for another year without urgent action. Ric Traynor, executive chairman of Begbies Traynor, said: 'The sharp rise in critical distress underscores just how tough the economic environment is for UK businesses and it's abundantly clear that tens of thousands of firms are struggling to stay afloat. 'Small and medium sized businesses across the UK are being put under immense strain by the recent increases to employer's NI as well as the increase to the national minimum wage. 'With limited financial headroom to absorb rising costs, many businesses are now reaching a tipping point.' It is the latest sign of the toll taken on many firms by the Government's move in last autumn's budget to increase national insurance contributions (NICs) and hike the minimum wage, both taking effect in April. Labour-intense companies in particular have felt the impact, such as retailers and restaurants and bars. Troubles in the sector have been compounded by a pull back in consumer spending, according to Begbies. Julie Palmer, a partner at Begbies Traynor, said: ' Households are still grappling with their finances, and this is keeping consumer confidence volatile. 'The knock-on effect of this is clear to see in the consumer-facing sectors where margins are thin, growth is hard to come by, and the impact of higher employee costs is pushing many businesses to the brink of collapse. 'So, it is of no surprise to me that while larger pub groups might be performing well, by squeezing out extra efficiencies to counteract onerous price rises, many independent players won't have the scale to withstand the pressures of this environment for another 12 months if nothing improves.' The British Beer and Pub Association (BBPA) recently estimated that 378 pubs will close this year across England, Wales and Scotland, which it said would amount to more than 5,600 direct job losses. The wider economy is also showing signs of strain, with recent official figures revealing gross domestic product shrank by 0.1% in May, following a 0.3% drop in April. 'With no end in sight to the current economic malaise, I fear the financial burdens companies are enduring at present are simply too high for many not to avoid collapse,' said Ms Palmer.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store