Research from the lender showed confidence in this sector of the market had reached an all time high, with almost four in 10 landlords believing the value of their property portfolio will increase over the next 12 months. This compared with five in 10 who believed their portfolio would remain stable, while less than one in 12 thought their portfolio would decrease in value during the next year.
Commenting on the findings, John Heron, managing director of Paragon Mortgages, said: “Landlords are confident that the BTL market will continue to prosper in 2007 and beyond. Both through capital appreciation of their existing portfolios and new property acquisitions, landlords fully expect their portfolios to increase in value by 2.6 per cent over the next 12 months or so. This compares with an expected rise of just 0.4 per cent two years ago.”
Andy Young, managing director at The Business Mortgage Company, said: “Our business findings are totally in line with Paragon Mortgages’ research. Our business levels in January 2007 have already exceeded those at our peak months last year. Feedback from our intermediaries shows that the BTL market is looking buoyant and there is a positive year ahead as landlords look at ways to grow their portfolios over the next
12 months.”
