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


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