Landlords 'cautious of new investment'

News Category: Industry News

This article was brought to you by Rentman the premium rent management software.

Landlords are remaining cautious about the property market.

Only one in ten landlords are looking to buy more properties in the next three months, according to a report from Paragon Mortgages.

Tom Entwistle, editor at online landlord community LandlordZONE, said he was not surprised about the results as landlords were being prevented from buying more properties by a restrictive market.

He said: "[Lenders] are not only charging high set-up fees, they appear to be avoiding landlords with large portfolios and also the lower priced terraced properties that professional landlords prefer."

Mr Entwistle added landlords preferred terrace properties as they produce higher profit yields due to their low maintenance costs and are inexpensive to buy.

A report by Upad.co.uk found 64 per cent of landlords were feeling more confident about the buy-to-let market.

However, the Paragon Mortgages report would seem to suggest landlords are going to wait to see how the market pans out before committing to any new investments.

Find out more about letting agent software