Landlords Planning To Buy Property On The Rise

More landlords are planning to buy property during the third quarter with terraced housing topping the list of what property to buy.

According to Paragon Mortgages, a specialist buy to let lender, 21% of landlords plan to buy property in the third quarter, up from 11% who said they did in the first quarter and 12% in the second quarter.

Of those planning to buy a property, 74% plan to buy terraced housing with others looking at semi detached houses, flats and detached property.

John Heron, Paragon Mortgages’ managing director, says: ‘There has been a significant jump in the percentage of landlords looking to purchase property, which reflects the increased level of confidence across the landlord community.

Tenant demand is strong and expected to grow in the coming years because of significant socio-economic and demographic changes, such as a rising population and growing numbers of net migration, one person households and students.”

Mortgage finance remains a major obstacle in the buy to let market. Easier access to mortgage finance is the main factor that would help landlords expand their property portfolio. Other factors include better tax incentives and sustained levels of tenant demand, greater levels of Government support and supply of property.

Don’t forget if you do have buy to let property, you do need to buy landlords insurance, or at least consider buying it. Relying on your home insurance and not advising your insurer that your property is rented out could mean that a claim is refused.

You can get a landlords insurance quote quickly and easily and buy online too if you want to – get more details.