Paragon: all signs point to buy to let boom

31 March 2006
Paragon Mortgages has released figures suggesting 2006 is set to be a particularly strong year for the buy to let mortgage market.

Following increases in activity reported by both the Council of Mortgage Lenders (CML) and the Royal Institute of Chartered Surveyors (RICS), Paragon said its own performance record so far this year confirmed the trend.

Managing director John Heron said that the number of mortgages it had already completed was 60 per cent higher than a year ago with a combined value of more than £1 billion.

The latest data to come from the CML shows that the number of advances made in the second half of 2005 was 40 per cent higher than in the first six months of the year. Home loans also outnumbered the equivalent period in 2004, 130,400 compared to 97,800.

Meanwhile, data from the RICS has revealed that demand for rental property continued to rise in the three months to January, by the largest amount in over four years.

Mr Heron said that all the recent reports "tell the same upbeat story".

With rising house prices keeping potential buyers in the rental market, "buy to let is looking rosier than it has for some time".

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