Landlords increased the size of their portfolio to an average of 13.2 properties in the first quarter of this year, says specialist lender Paragon Mortgages. This was up from 12.7 properties in the last quarter of last year.
Landlords expect to carry on growing their portfolios, to reach 13.7 properties over the next 12 months. The Paragon research also shows that nearly half (43%) of landlords think that tenancy demand will grow over the next 12 months, with amateur landlords (those with up to five rental properties) being more optimistic than professional ones.
Of those looking to buy properties within the next year, the most popular choice is terrace homes followed by semis, flats and maisonettes.
Statistics released by the Council of Mortgage Lenders last month showed that buy to let lending accounted for 11.5% of the total gross mortgage lending in 2013, up for 9.8% in 2011. At £16.2 bn, gross buy to let lending was 19% higher than the £13.8 bn advanced in 2011, it’s highest level in four years.
Paul Smee, Director General of the Council of Morgage Lenders said: “buy to let is benefiting from strong tenant demand, which is likely to continue. Loan performance compares favorably with the owner-occupier sector, and the overall outlook for the buy to let sector is positive”.