Midlands Buy to Let Investors Most Likely to Expand

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Buy let property investors in the Midlands are most likely to expand their property portfolios this year, according to research by specialist buy to let lender Paragon.

Overall, Paragon’s buy to let survey found that just 14 per cent of landlords in England and Wales are currently looking to expand their portfolios, with those in the Midlands most likely to buy an extra property.

Almost one in four (24 per cent) of landlords in the East Midlands plan to buy further investment properties this year, closely followed by 22 per cent of landlords in the West Midlands.

This compares to landlords in Wales, London Central, and the South West, where just 10 per cent, 9 per cent, and 8 per cent of landlords respectively intend to buy.

More than half (52 per cent) of those looking to invest further said they were targeting terraced properties. One in four, meanwhile, said they would look to buy a house in multiple occupation (HMO).

Semi-detached houses were being targeted by 32 per cent, while 26 per cent were looking to purchase flats for investment.

In addition to the popularity of the midlands, the research also showed that professional landlords with larger portfolios are more likely to invest further.

Just 8 per cent of landlords with one property are looking to invest, compared with 20 per cent of large portfolio landlords with 20 properties or more.

Of landlords with 2-3 existing properties 12 per cent are looking to expand, while 15 per cent of those with 4-5 properties are looking to buy further. 14 per cent of investors with 6-19 properties intend to purchase.

Paragon’s data shows nearly two-thirds of landlords plan to fund their next purchase with a buy to let mortgage

Richard Rowntree of Paragon commented: ‘Portfolio landlords have adopted a number of strategies to adapt to the tax and regulatory changes of recent years.

‘We’re seeing trends such as these landlords buying stock from smaller-scale participants as they exit the market or targeting higher-yielding properties such as HMOs.’

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