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Paragon probe reveals nation of landlords

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

properties.

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

investment.

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&#39s 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.”

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