Insurance News Archive

Paragon: Landlords' portfolio values rising

Posted by Dan Winters

Improvement in UK house prices is being reflected in the value of residential landlords' portfolios, according to research by mortgage lender Paragon.

The firm's latest study shows that the average value of investors' properties rose by 6.1 per cent during the first quarter of 2010, to £1.52 million.

John Heron, managing director of Paragon Mortgages, noted recent reports that landlord optimism is at its highest level since 2007.

He said: "Confidence among the landlord community has grown in recent months. On the whole, house prices have been rising since the middle of last year and we know that landlords have taken advantage of a more fluid housing market to add properties to their portfolios."

Separate research by the Royal Institution of Chartered Surveyors has found that almost a quarter of members were seeing a fall in the number of landlord instructions at the start of April.

The study suggested that landlords would be likely to see rental expectations rise as the supply of properties drops for the second consecutive quarter.

25 May 2010