The Paragon Mortgages Property Investor Confidence Tracking (PICT) Index, takes account of the past quarter and expectations for the next. It rose during the autumn from 117.9 at the end of the third quarter to 123.8 at the beginning of December.
Since September, the rise in the number of investment properties is marginal, 5.4 per cent to 5.5 per cent, but values have grown by 5 per cent, from £380,000 to £399,000. For the next twelve months, landlords expect to see a 25 per cent increase in the number of properties they hold and expect capital values to increase by 12 per cent.
However, Paragon Mortgages believes that proposed legislation covering Houses in Multiple Occupation and Selective Licensing could effect this investor confidence.
Announcing the results of the latest PICT Index, John Heron, managing director of Paragon Mortgages, said: "The confidence shown in the Buy-to-Let market could be damaged if government persists in widening regulation needed for Houses in Multiple Occupation, to include unrelated sharers in ordinary residential property. The Buy-to-Let sector could also receive the wrong signals if Selective Licensing in deprived areas is introduced." Mr Heron believes that these two measures could shake investor confidence unnecessarily and "to a greater degree than events on the world stage."
