Buy to let landlords 'planning to buy more property'

22 June 2010

There has been a rise in the number of buy to let landlords intending to purchase further assets, according to one organisation.

Research by Paragon Mortgages has revealed that 21 per cent of portfolio investors are looking to acquire property in the third quarter of 2010, compared with 11 per cent who had planned to do so in the second quarter.

Terraced housing was the most popular type of asset the landlords were seeking to buy, followed by semi-detached houses, flats and detached homes, the firm reported.

Commenting on the rise of landlords looking to purchase properties, managing director of the firm John Heron said that tenant demand is strong and is expected to increase on the back of population growth and rises in migration, single-person households and the number of individuals in higher education.

However, those seeking to expand their portfolios may be hindered by the lack of availability of buy to let mortgages, as four out of ten are claiming that they applied for finance in the second quarter and 52 per cent said they found it more difficult to secure a loan than they had previously.

With more individuals looking for a roof over their heads, the private rented sector is vital to providing a supply of housing, the Residential Landlords Association recently said, stating that the industry was the only one growing fast enough to keep up with demand.

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