Landlords see portfolio values rise

Landlord Expert
By Landlord Expert May 28, 2010 09:51

 

Many of Britain’s residential landlords have portfolios worth significantly more value than they did last year, due in large part to increased purchasing activity in the buy-to-let sector, as well as to rising property prices in some parts of the country. According to statistics released by Paragon Mortgages, landlord portfolio values rose by 6.1% during the first three months of the year, bringing the average buy-to-let investor’s total real estate value to £1.52 million. The value of landlord portfolios started increasing noticeably during the last quarter of 2009, at which point this rate stood at 4.2%. But since then, this level of growth has continued to increase and some observers believe that a greater availability of new buy-to-let loan products may also have sparked this rise.

It is especially important to note that Britain last saw a rise in portfolio values over two consecutive quarters several months before the economic crisis of late 2008. Landlords are more optimistic about the buy-to-let sector’s prospects, and this has likely convinced some to expand their portfolios.

John Heron, Paragon’s managing director, noted that the direction of the buy-to-let lending sector will play a major part in determining whether portfolio values continue to rise and if landlords will be able to purchase more real estate in the second half of the year. More than 7 in 10 landlords (73%) predict that residential portfolio values will remain at current levels in the near future, with an additional 19% anticipating further increases.

 

 

Landlord Expert
By Landlord Expert May 28, 2010 09:51

BEST LANDLORD OFFERS

Recent Member Comments

  • User AvatarDave Osbourne { Had a blocked gully which tenant ignored after recent rain had the lounge and hall partly flooded the floor is going to be replaced but... } – Oct 16, 4:47 PM
  • User AvatarFiona Bullock { Dear Sir, I have received a text and email from my tenants saying they wish to end their tenancy of 3 years with effect from... } – Jul 05, 12:55 PM
  • User Avatarchristine clare timmins { Hi Rahima - Did you manage to resolve your problem? I am new to this site and saw your dilemma - we are about to... } – Jun 28, 9:12 PM
  • User AvatarShani Zvi { Hey, I need an advise regarding the TDS registration. The agency I'm working with claims that they need to register the tenant Zero Deposit scheme... } – Jun 04, 11:43 AM
  • Amanda Harrison { Advise needed }
  • Older »

News Archive