Fewer buy-to-let new entrants
23 April 2004
According to Paragon Mortgages, the last quarter has seen a fall in the number of 'novice' first time buyer landlords - suggesting that levels of experience among residential property investors are on the rise.
Since June 2002 there has been a continuing decline from almost 43 per cent to 27 per cent now.
Additionally, the property market has witnessed an increase in the number of landlords growing the size of their portfolios, from 37 per cent last quarter to 42 per cent this quarter.
Paragon Mortgages' managing director John Heron welcomes the news: "The typical landlord is becoming more experienced and is more likely to be adding to his buy-to-let portfolio than buying his first investment property - contrary to what some commentators are suggesting."
Mr Heron added: "This growing level of expertise is welcome from the lender's point of view as it makes buy-to-let business safer and more sustainable, particularly as a landlord will only buy an additional property if he is having a satisfactory experience with his existing portfolio."