You are here: Home - News -

Buy-to-let market matures

by:
  • 15/01/2003
  • 0
The number of landlords in the buy-to-let market are peaking, according to lender, Paragon Mortgage...

The number of landlords in the buy-to-let market are peaking, according to lender, Paragon Mortgages.

It claims the number of mortgages arranged in the last quarter of 2002, for first-time landlords, fell from 39% to 32%.

The lender’s quarterly survey also shows buy-to-let mortgages comprised over 10% of the total market in the last quarter, up from 9.2%. 41% of these were taken out by established landlords.

John Heron, managing director at Paragon, commented: ‘The fact that more experienced landlords are stepping up investment in rental property, while fewer novice landlords are entering the market demonstrates the maturity of the buy-to-let market. We also know from other Paragon surveys that professional landlords are buying more modestly priced properties to maximise rental returns.’

Returns expected from the sector vary from between 4% and 7%, according to rental returns from Association of Residential Lettings Agents (ARLA) members. While rental conditions remain difficult in London and the South East, John Crossley, chairman of ARLA, said: ‘Our figures show a relatively stable market with encouraging signs of new rental activity.’


Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Concerns raised over house prices indexes’ methodology

The House Builders Federation (HBF) has questioned the methodology used in the various UK house pric...

Close