Landlords show confidence in buy to let

06 November 2009

Written by Jeni Browne

Landlords in the UK will generally retain their properties in 2009, according to new research.

A study by Paragon Group has found that just 5.7 per cent of those who rent out property are set to sell their homes in the coming year.

There is also a general consensus that the value of landlords' property portfolios will grow during the next 12 months.

One-third of those with buy to let mortgages said that tenant demand for property will increase in 2010, while the majority think it will stay at a similar level to that which they are experiencing at present.

Nigel Terrington, Paragon Group chief executive, explained why private rented sector property may be sought-after in the current climate.

He said: "It is unlikely that the mainstream mortgage market will recover for a number of years and vast sectors of the population, such as first-time buyers and people with impaired credit history, continue to be excluded from the market."

The Halifax House Price Index was published this week, suggesting that the typical home in the UK was worth £165,528 in October.

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