Landlords 'are increasingly looking for long-term returns'

News Category: Industry News

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A new report has suggested that the buy-to-let market in the UK is becoming increasingly dominated by professional investors.

Paragon Mortgages found that the number of first-time landlords applying for mortgages has been in decline since the beginning of 2002.

Over the same period the average time a buy-to-let landlord plans to keep his properties for has risen to 17 years.

Separately, Paragon found that 93 per cent of landlords have been in the sector for at least six years.

Nigel Terrington, Paragon chief executive, commented: "There is still demand from new landlords to enter the market and there opportunities remain for those investors, but professional landlords hold the majority of stock in the private rented sector.

"These landlords represent the core of the buy-to-let market - they are investors that base their purchase decisions on proven tenant demand forlong-term returns rather than speculative investment for a quick profit."

Mr Terrington added that landlords were "in a strong position" to survive the current economic downturn.

Recently, the Business Mortgage Company asserted that the demand for rented accommodation was still strong in the UK.

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