Cap­i­tal Gains rise will not stop in­vestors

The Peterborough Evening Telegraph - - Property Today -

THE num­ber of land­lords plan­ning to pur­chase prop­erty for in­vest­ment pur­poses has nearly dou­bled, re­search from lead­ing spe­cial­ist buy-to­let lender Paragon Mort­gages has re­vealed.

Paragon’s Trends re­search, a quar­terly panel sur­vey of land­lords, shows that 21 per cent of land­lords plan to pur­chase prop­erty dur­ing the third quar­ter of the year, up from 11 per cent who said they planned to pur­chase dur­ing the first quar­ter and 12 per cent who planned to pur­chase in the sec­ond.

Ter­raced hous­ing topped the pop­u­lar­ity list of those look­ing to buy, with 74 per cent of land­lords stat­ing that they in­tended to pur­chase this type of prop­erty, fol­lowed by semi-de­tached hous­ing, flats and de­tached prop­erty.

How­ever, mort­gage fi­nance re­mains a ma­jor ob­sta­cle. Four out of 10 land­lords said that they at­tempted to se­cure buy-to-let fi­nance for pur­chase or re­mort­gage pur­poses dur­ing the sec­ond quar­ter. Of those that did, 52 per cent said that it was more dif­fi­cult than pre­vi­ous at­tempts to se­cure fi­nance, with just 13 per cent stat­ing that it was eas­ier. The re­main­ing 35 per cent said they no­ticed no dif­fer­ence in the avail­abil­ity of fi­nance.

The Trends re­search showed that a wider avail­abil­ity of mort­gage fi­nance was the main fac­tor that would en­cour­age a land­lord to ex­pand their port­fo­lio. Nearly half (46 per cent) said wider mort­gage fi­nance would en­cour­age them to ex­pand their port­fo­lios, fol­lowed by bet­ter tax in­cen­tives (43 per cent) and sus­tained lev­els of ten­ant de­mand (42 per cent).

John Heron, Paragon Mort­gages’ man­ag­ing di­rec­tor, said: “There has been a sig­nif­i­cant jump in the per­cent­age of land­lords look­ing to pur­chase prop­erty. How­ever, ac­cess­ing mort­gage fi­nance re­mains dif­fi­cult for a large num­ber of land­lords.

“We have seen new en­trants into the buy-to-let mar­ket, but the cri­te­ria at­tached to the ma­jor­ity of buy-to-let mort­gages is tar­geted at small scale in­vestors rather than pro­fes­sional land­lords. If the mar­ket, and the pri­vate rented sec­tor, is go­ing to ex­pand, then cri­te­ria needs to be adapted to al­low larger-scale land­lords to grow their prop­erty busi­nesses.”

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.