Buy to let landlords predict house prices will rise

13 October 2009

Written by David Whittaker

Some 14 per cent of buy to let landlords expect to buy an investment property in the coming 12 months, new research reveals.

According to a study from Paragon Mortgages, those who already have buy to let mortgages believe their property portfolios will increase in value during the year.

Indeed, the landlords surveyed predicted that what they own will grow in value by an average of 0.8 per cent.

John Heron, managing director of Paragon Mortgages, said: "House prices have fallen steadily since the end of 2007 and this is reflected in landlords' expectations for the future value of their portfolios."

However, the drop in property prices over the last two years has not prompted buy to let professionals to sell homes - they have instead taken advantage of the cheaper bricks and mortar by buying more homes.

And in a similar viewpoint to Property Hawk website editor Chris Horne, Mr Heron suggested that property investment is a "long-term game".

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