Insurance News Archive
Rise in buy to let insurance policyholders planning to purchase
Posted by Jonathan Walker
The number of buy to let insurance policyholders planning to purchase residential property for investment purposes has almost doubled, according to a leading buy to let mortgage provider.
Paragon Trends research, a quarterly survey of UK landlords, has found that 21 per cent of buy to let insurance policyholders intend to purchase buildings during the third quarter of 2010 – up from 11 per cent in the first quarter.
Mortgage acquisition remains a major obstacle to investors, however, with four in ten landlords claiming that they had tried to secure buy to let finance, with 52 per cent of those describing their experience as "more difficult" than in the past.
John Heron, managing director of Paragon Mortgages, said: "There has been a significant jump in the percentage of landlords looking to purchase property, which reflects the increased level of confidence across the landlord community."
He added that, although confidence among buy to let insurance policyholders is growing, there is still a "dislocation" between landlords' desire to buy and their ability to do so.
The government today reveals its revision of economic policy in an emergency Budget, with analysts predicting a significant rise in capital gains tax.
Last week, the Association of Residential Letting Agents warned that this could have serious implications on landlords looking to sell property for a profit.
22 Jun 2010
