Buy-to-let landlords expect property portfolios to grow

The survey also shows that they expect to increase the size of their rental portfolios by 21%, from an average of nine to 10.9 properties.

The levels of confidence expressed by Buy to Let investors through the Paragon PICT Index, which is included in this survey, is returning to levels last seen in the spring of 2001. Over the last three months, the average size of portfolios has remained unchanged. Over half (52%) of the landlords responding to the Paragon survey hold portfolios of between three and ten residential properties. Typically, novice landlords hold just one property.

Although the popularity of flats as an investment has fallen from 45% to 38%, they still rank second as the most popular property investment type. Terraced houses are in poll position and account for 46% of Buy to Let properties, up from 44% in the last quarter. Meanwhile, the popularity of detached and semi-detached investments has grown from 11% to 16%.

Commenting on the survey, John Heron, managing director of Paragon Mortgages, said: “As a specialist buy-to-let mortgage lender, Paragon lending tends towards the professionals in the sector. However, respondents to this survey represent a typical cross section of the buy-to-let market and are a valuable bellwether for the health and direction of buy-to-let in general.”