Landlords planning to buy more property

Paragon Mortgages informed that the number of landlords intending to acquire residential property increased, even though the unavailability of mortgage finance remains a major impediment.

The study carried out by Paragon has revealed that 21 per cent of landlords are going to purchase property in the third quarter of the current year, which is a surge from 11 per cent who intended to buy in the first quarter and 12 per cent in the second quarter.

However, while four out of ten landlords tried to obtain buy-to-let mortgages for acquisitions or remortgage in the second quarter of 2010, 52% responded they found it more difficult to accomplish than earlier.

Only 13% of the respondents said it was easier, while 35% said they had not seen a change at all.

Despite this, 46% of landlords stated that a greater availability of mortgage finance was the major factor that would stimulate them for expanding, followed by tax incentives (43%) and stable tenant demand (42%).

John Heron of Paragon said that most landlords are gaining more confidence due to a strong tenant demand which is exhibiting the tendency to grow.

Still, the availability of mortgage finance for many landlords leaves much to be desired. Although new people managed to enter the buy-to-let market, the criteria of most buy-to-let mortgages are more appropriate for small scale investors but not suitable for professional landlords.
 


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