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Buying opportunities boost landlord confidence

Catherine Deshayes

Weaker markets aren't all doom and gloom: buying opportunities have arisen, letting landlords take the mortgage squeeze in their stride.

The quarterly Trends survey by Paragon Mortgages has shown that landlord's confidence in the buy-to-let market is still strong.

Factors spurring landlords on include high tenant demand, rising rents and cooling property prices. Many see the current environment as a great opportunity in which to snap up property at knock down prices.

Landlords looking to sell are outnumbered two to one by those who are looking to buy more properties. The Trends survey reveals that 14% intend to purchase properties in the current market, with 71.4% of those stating that an ability to secure lower prices on properties will spur them to grow their portfolio over the next year.  

But, the current climate has instilled some fear into landlords, with the vast majority saying that they intended to sit tight and take no action in the current market.

John Heron, Managing Director of Paragon Mortgages, said, "Tenant demand is very high, rents are rising and buying opportunities are presenting themselves in a cooling housing market. 

"Professional landlords are using current market conditions to get ahead. With an average portfolio gearing of just 36%, they are well placed to free up equity to expand their portfolios and this is action we are seeing landlords take.

"Now is a good time for landlords to tweak their portfolios and dispose of properties that aren't performing as they would have hoped, while picking up property at cheap prices to bolster their portfolios," Mr Heron went on to say.