Landlords grow portfolios
Nationally, property prices rose by 1.99 per cent, with larger rises in some regions.
John Heron, Paragon Mortgages’ managing director, said: “Residential property investors continue to build their portfolios in a buoyant housing market. We’ve seen prices at which they buy properties rise by almost 2 per cent since last month, contributing to a 4.7 pre cent increase in the six months since October 2005. This pick-up is led in particular by strong property price inflation in the North, Greater London and the South East.”
Rising property values are not deterring investors from growing their portfolios. John Heron added: “There has been a resurgence of buy-to-let activity since last autumn, particularly among larger scale and professional investors. In all parts of the country, upbeat landlords are buying properties at higher prices, secure in the knowledge that there is good tenant demand out there for the right property in the right place. We are seeing good investor activity in many northern cities, as they purchase to meet the accommodation needs of all categories of tenant – students, key workers, families on benefit, and young professionals. For the most part, existing landlords are adding to their portfolios, and there are not so many first time landlords. It is perhaps no coincidence that real estate investment is popular at a time of uncertainty in the equity markets.”