Buy-to-let landlords increasing portfolios
- 23rd November 2009
- Buy-To-Let Property News
Mortgage advisor reveals record number of experienced landlords seeking to increase their buy-to-let portfolios.
The research by Paragon Mortgages revealed that 48 percent of landlords seek to obtain new mortgages for property, up from 31 percent in 2008. This is the highest figure since 2001, when the question was first introduced into their research.
This news coincides with data from the Council of Mortgage Lenders (CML) stating a 10 percent growth in the buy-to-let sector in the third quarter of this year.
The number of new buy-to-let investors accounted for only 10 percent of the market, the lowest figure recorded by the organisation, which marked a high of 42 percent in the fourth quarter of 2001.
Managing Director of Paragon Mortgages, John Heron, commented:
“It is encouraging that landlords are now adding to their portfolios. We have not experienced the mass sell-off of buy-to-let property during the recession that some commentators were predicting, but buying activity has been subdued.
"As house prices have stabilised, landlords now obviously believe that it is a good time to start expanding before house price inflation picks up again.”
The findings of Paragon correspond to a recent survey by ludlowthompson.com, which found that buy-to-let investors are on the whole more confident about the residential property market. The findings state:
• 73% of buy-to-let investors expect house prices to rise over the next six months
• 89% expect rents to stay the same or increase.
• Nearly a quarter (24%) expect voids to decrease over the next six months
Stephen Ludlow, Director of ludlowthompson, said: “Buy-to-let investors are now optimistic on capital values, rents and voids. If their optimism proves to be well-founded then residential property looks like an excellent investment option, even though there are still some lingering areas of concern.”
It is encouraging that landlords are now adding to their portfolios.
FREE & INSTANT PROPERTY VALUATION
IN JUST 60 SECONDS