Flats and terraces 'continue to attract landlords'

by Sarah Ashcroft

Flats, maisonettes and terraced homes continue to attract landlords looking for potentially lucrative investments in the buy-to-let mortgages market.

This is according to leading specialist inbuy-to-let mortgages Paragon Mortgages, which has unveiled the most popular property types that businesspeople want to add to their property portfolios in the latter part of 2012.

Of the individuals polled in the survey for the third quarter, 16 per cent expect to increase the size of their rental collection in the final three months of the year.

Research by the lender found flats and terraced houses are top of the list of homes that landlords are planning to invest in over the October-December period of the year, with 58 per cent of respondents to the company's Trends Survey claiming to have an interest in both of these types of dwellings.

Semi-detached houses scored a respectable 30 per cent, catering for families who are renting during this challenging time for the property market, while 21 per cent of landlords are planning to buy detached houses with a buy-to-let mortgage.

Bungalows are included in nine per cent of investors' plans for the fourth quarter and multi-unit blocks also attracted nine per cent of the interests of these businesspeople.

Finally, houses in multiple occupation (HMO) were part of six per cent of landlords' portfolio expansion plans for the end of the year.

Terraced homes remain the most popular investment option, with the third-quarter of 2012 seeing the popularity of flats and maisonettes, semi-detached and detached houses rise to their highest level yet this year.

Managing director of Paragon Mortgages John Heron said: "It is very encouraging to see private landlords looking to invest in a wider variety of property types.

"This may well be in response to the fact that we are starting to see higher demand for larger rented properties from families who are choosing the private rented sector because they do not want to, or cannot buy in today's difficult economic environment."

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Published on: September 11, 2012

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