Paragon Mortgages predict upbeat landlords

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Paragon Mortgages predict upbeat landlords

Thu 24th Aug 2006

Landlords are optimistic that rental yields will remain strong and many property investors are keen to expand their portfolios, according to new data from Paragon Mortgages.

The company's latest buy-to-let index revealed that many landlords are confident that the private renting sector is set to continue to result in stable returns and therefore many landlords are already looking at other properties to help increase their potential rental yields.

In addition, data from the Council of Mortgage Lenders (CML) showed that during the first six months of the year, new buy-to-let loans totalled a record £17.5 billion – 20 per cent higher than in the second half of 2005 as property portfolios increase.

The recent expansion of the EU, as well as the continued rise in house prices, has helped to boost demand from tenants significantly, with around 600,000 migrants relocating to the UK.

John Heron, managing director of Paragon Mortgages, explained: "The first half of 2006 has proved a particularly buoyant time for residential property investors, who have grown their portfolios strongly on the back of an upsurge in tenant demand, particularly from inward migrants."

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