Insurance News Archive
Buy-to-let investors snap up cheap property
Buy-to-let investors are increasingly snapping up cheaper properties, according to recent figures.
A survey by specialist buy-to-let lender, Paragon Mortgages, shows that the average price which landlords paid for investment properties fell slightly in March.
Figures show that March saw the average price paid by landlords fall 1.5 per cent to £161,039. However, despite this fall, property values remain 5.5 per cent higher than at the same time last year.
"At the end of 2005 and especially the start of 2006, we witnessed a significant pick-up in activity in the buy-to-let sector, with professional and smaller scale landlords alike purchasing additional properties in response to identified demand from tenants," said John Heron, managing director of Paragon Mortgages.
He went on to say that property values have been rising steadily since November but this month has seen an easing in the amount landlords are paying.
It is thought that this may be due to the fact that tenant demand is strongest for smaller homes as single people and young couples are looking for simple, rented properties.
"As serious investors buy in response to actual tenant demand, average prices paid have eased a little," Mr Heron continued.
© Adfero Ltd
28 Apr 2006