There has been a significant rise in the proportion of landlords thinking of making investments in new buy to let properties from Q2 to Q3 of 2010, according to Paragon Mortgages. 21% of landlords interviewed in a recent poll said that they would be looking to expand their portfolios during the period from July to September this year.

There were far fewer landlords looking to make investments during the first 2 quarters of the year, the figures being 11% and 12% respectively.

Perhaps more buy to let property owners would be looking to make further investments if mortgages were more readily available 52% of the landlord community have complained that it is more difficult to obtain a loan now than in times past. Just 13% said that they had experienced little difficulty in their attempts at finding the necessary finance.

John Heron, Managing Director of Paragon Mortgages, said, ‘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’, he continued.

Almost half of those landlords interviewed said that the availability of mortgage finance would be the major influencing factor in their decision of whether to make further investments.

John Heron said, ‘there remains a dislocation between landlords’ desire to purchase property and their ability to do so. Accessing mortgage finance remains difficult for a large number of landlords’

We have seen new entrants into the buy-to-let market, but the criteria attached to the majority of buy-to-let mortgages is targeted at small scale investors rather than professional landlords. If the market, and the private rented sector, is going to expand, then criteria needs to be adapted to allow larger-scale landlords to grow their property businesses.

Many landlords would also be tempted to purchasing buy to let properties if there were improved tax incentives or a higher level of tenant demand.

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