Number of first-time landlords increasing

The number of first-time landlords entering the buy-to-let market is now at the highest level since the third quarter of 2012, research from Paragon has revealed.

Paragon’s quarterly trend survey found that intermediary buy to let business has been growing from first-time landlords since mid-2009.

John Heron, director of mortgages at Paragon, said: “The dynamics of the landlord market are changing. Professional landlords were typically the backbone and driving force behind growth in the market.

“However in recent times we are seeing them becoming more constrained in terms of being able to release equity and secure new finance.

“Private investor landlords – those with between one and five properties – will be the ones to pick up the slack. These landlords have access to more flexible finance and are able to agree deals much more quickly.

“These landlords are financially astute individuals they typically have other investments such as equities and gilts or bonds, and are well-placed to cope with fluctuations in the economy and the general demands of being a landlord.”

The report found that 20% of intermediaries business has come from first-time landlords on average since the final quarter of 2010. The percentage of cases peaked at 24% in third quarter of 2012.

Ashley Bennett at Hove Lets said: “This report shows the continuing desire of those who wish to invest in property doing so via buy to let.

At Hove Lets we shall be pleased to advise landlords on all aspects of buy to let investment.”