Investment Property News - Bueno Investments Limited

The buy-to-let market is being dominated by professional landlords who plan to hold on to their properties for the long-term, according to research.

Only 16% of buy-to-let mortgages arranged during the three months to the end of February were taken out by first time investors, Paragon Mortgages said.

It claimed the proportion of novice buy-to-let investors entering the market had been steadily declining since May 2001, when they accounted for four out of 10 buy-to-let mortgages.

Instead the market is being dominated by professional landlords who are either remortgaging or adding new properties to their portfolios.

About 45% of buy-to-let mortgages arranged during the period were taken out by landlords who were remortgaging, while 34% of loans went to investors who were extending their portfolios.

The group added that the average landlord had held their property for at least six years.

Nigel Terrington, chief executive of Paragon Group, said: "There is still demand from new landlords to enter the market where opportunities remain for those investors, but professional landlords hold the majority of stock in the private rented sector and these larger scale investors account for the bulk of the new transactions."

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