Britain is turning into a nation of landlords, acc-ording to latest
research by Paragon Mortgages.
The Paragon Mortgages Property Investor Confidence Tracking Index says in
the last five years about £6bn-£7bn have been lent to landlords
against about 135,000 investment properties in the buy-to-let sector.
The index, compiled in June, shows that over two-thirds of private
landlords with mortgages have created small portfolios of property
investments, with 37.7 per cent having two or three properties, 13.4 per
cent with four or five properties and 9.3 per cent with between six and 10
Ten per cent of landlords have built up substantial portfolios of between
11 and 50 residential investment properties.
Just under 35 per cent of landlords say that they invest in property for
the rate of return, 27.6 per cent because it represents a safe investment
and 7.1 per cent said they opted for property because it is a more hands-on
Managing director John Heron says: “Increasingly, we are becoming a nation
of small landlords. These private investor landlords are now an important
part of the nation's economic and social fabric. We need to understand this
economic sector better and be able to gauge how private landlords react to
the ups and downs of the economy.”