Static house prices and more relaxed mortgage lenders loosening their grip on buy to let finance has helped professional landlords add more properties to their portfolios, according to a new study.
The average professional landlord has increased property holdings by one to 14 over the past three months, reports the research by landlord lender Paragon Mortgages.
Landlords are also buying properties at a faster rate - with the average portfolio taking nine months to shift up from 12.5 properties at the end of the second quarter of 2011 to 12.9 by the end of the first quarter this year, and then taking just three months to move up to an average 14.1 homes.
Property professional are also confident about the stability of the private rental market, with a fifth (21%) of landlords reporting that they want to add more property to their holdings by the end of September - up from 18% in the same quarter last year.
Just under half (49%) of landlords planning to buy favour terraced homes, a quarter (26%) opt for flats or maisonettes, while 23% prefer semi-detached homes.
Paragon Mortgages managing director John Heron said: "The fact that landlords are planning to make further investments in their property portfolios is positive news.
"It shows their appetite to grow their business to meet the on-going demands from tenants and demonstrates the viability of the UK’s private rented sector.
"The issues around housing supply in the UK are well documented and have been hotly debated over the past few months in particular.
"However, what our research shows is that landlords are investing further in private rental property and they look set to continue to buy over the coming quarters.
"While this will not solve the problems around supply it will make a valuable contribution."
Source: Landlord Zone
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