Buy-to-let investors are planning to increase the size of their portfolio by 25% over the coming year, according to the Property Investor Confidence tracking index (PICT) compiled by Paragon Mortgages.
The PICT index, which looks at changes in portfolio values over the past quarter alongside landlords’ expectations of their portfolio value for the next 12 months, also indicated landlords expect their portfolio to gain 10% over the next year.
John Heron, managing director of Paragon Mortgages, said: ‘Since launching this Paragon index, it has become increasingly obvious the typical buy-to-let investor understands the market and the average loan to value demonstrates investment is being approached very cautiously. This latest survey suggests the buy-to-let sector is in a healthy state.’
The largest proportion of buy-to-let properties are in the South East, standing at 38.6% followed by the South West at 17.45%. The Midlands stands at 15%, the North East at 14% and the North West at 8.7%. But Heron believes investors could benefit from investing in areas outside their local vicinity.
He said: ‘Many investors still concentrate on finding opportunities on their doorstep. They could do well looking further afield.’