The report showed the average figure in November 2006 stood at 10.2, while the average portfolio value increased by 7 per cent.
Landlords further expected to increase their portfolios by 8 per cent over the next 12 months. Paragon reported this was a larger increase than was forecast last quarter, indicating that recent interest rate hikes were not deterring buy-to-let (BTL) investors.
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John Heron, managing director of Paragon Mortgages, commented: “Our BTL Index has shown that in recent months, rents have been rising faster than house prices. High tenant demand means landlords are able to achieve strong rental incomes and good yields and are responding by extending their portfolios.
“On average, these landlords have been in the market for in excess of 13 years. They are experienced and have been successful by keeping their fingers on the pulse of the market in which they operate. Their confidence is a good indicator of current conditions and their confidence is high.”
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Darren Pescod, managing director for The Mortgage Broker Ltd, said: “It’s a high average number, but Paragon does cater more for professional landlords. It’s understandable why landlords are so confident, as they have seen great returns and a lot of tenant demand. I think the same mood will be shared by smaller investors.”
