Confidence of landlords in buy-to-let market still strong, reports Paragon Mortgages

Posted under General by Jermaine

The increase in tenant demand, rise in rents and falling prices combined together may lead to the growth of portfolios for landlords in the coming 12 months.

The research, conducted by the Paragon Mortgages, reveals that 71% of the landlords are tempted to purchase bargain properties at lower prices. The percentage of landlords intending to add properties to their portfolios is double the number intending to sell.

The research also points out that the vast majority preferred to wait for the time being, while 14% showed interest in buying properties in the current market.

Paragon’s Managing Director, John Heron, suggests that landlords should dispose off those properties which did not perform as per their expectations and bolster their portfolios by purchasing property at cheaper prices.

Heron reports that professional landlords are exploiting prevailing market conditions to expand portfolios. He considers them well placed to free up their equity for expanding portfolio.

Paragon’s research also highlights that large number of landlords have improved their rental properties by installing new boilers and enhancing energy efficiency.

Effective 1st October 2008, landlords would be legally bound to furnish EPC to the tenants, failing that they would be charged a £200 fine and barred from marketing the property until receipt of a certificate.

The cost of energy saving measures could be offset against income tax up to £1,500, as per provisions of the Landlord Energy Saving Allowance.

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