Buy to let strong growth

29/08/2007

Paragon’s have found that brokers have been benefiting from increased business via the buy-to-let sector.

Due to property prices becoming unaffordable, rented accommodation is becoming more extensive. Interest rates have made it difficult for first-time buyers to step on to the property ladder.

Managing director, John Heron at Paragon Mortgages commented: “Investors are in a very healthy position. They are clearly seeking better value than residential purchasers and this is shown in the price they are paying for their property. Landlords are more experienced in negotiating down the price of a property than residential buyers and are also excellent at spotting those under-valued locations that will be the next ‘up-and-coming areas’.”

Only recently the Council of Mortgage Lenders found just how popular the buy to let sector was becoming. It accounted for a record 12 per cent of all new mortgage loans in the first half of 2007.

Heron added: “Most landlords view buy-to-let as a long-term prospect and expect to keep their properties for an average of ten years - over which time they will benefit from regular rental income as well as the capital appreciation of the property.”

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