Being a landlord is a long-term business
Landlords based in London and other parts of the UK must look at the long-term picture if they are to continue making profit from the private rented sector, it has been claimed.
According to specialist mortgage provider Paragon, the credit crunch has made it much more difficult for speculative landlords to make quick profits in the buy-to-let sector.
The Telegraph reports that there are still exciting opportunities for professional landlords patient enough to look at the future. Paragon lends to career landlords, and its average customer retains a buy-to-let property for 16 to 17 years.
Nigel Terrington, chief executive of Paragon Mortgages, told the newspaper: "Short-term players - the type that buy off-plan in city centres - they are not our customers and it's good that they are now out of the market - they just confuse it."
He went on to explain that the lack of mortgage availability for landlords would serve to limit the number of investors joining the market and keep private rents high. For the six months to March 2008, Paragon's lending was down nearly 56 per cent to £855.6 million among landlords.
Recently, Paragon advised any homeowners looking to rent out their property to ensure that they are fully versed on the rules governing the private rented sector, following the introduction of a number of new reforms over the last few years.
Published 27th May, 2008
© 2008 Estates IT Limited
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Landlords based in London and other parts of the UK must look at the long-term picture if they are to continue making profit from the private rented sector, it has been claimed.