Buy to Let investors are here to stay
April 29th, 2008 by 
Guy
An exodus of BTL investors in the market is highly unlikely stated a spokeman for Paragon Mortgages.
Some had previously predicted that some of the investors from the buy to let market as a result of Capital Gains Tax, and the current credit crunch in the housing market may have meant the investers would have sold up and moved on.The survey of over 200 brokers revealed the market is being driven by professional landlords who build long-term portfolios and that the percentage of remortgage and portfolio extension cases has risen steadily since 2002.
Statistics gathered by the Association of Rental and Letting Agents reveal that the average buy to let investor intends to hold a property for around 17 or 18 years.
In the last quarterto the end of February, the respondent brokers said four out of 10 landlords taking out buy-to-let mortgages (45%) were remortgaging, while 34% were seeking to extend their portfolios.
There is still demand from new landlords to enter the market and 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 staed a spokesman for Paragon.
“These landlords represent the core of the buy to let market – they are investors that base their purchase decisions on proven tenant demand for long-term returns rather than speculative investment for a quick profit.”
Paragonn also stated that “We are experiencing one of the toughest environments for decades, but landlords are in a strong position and invest for the long-term, with some taking opportunist action to add to their portfolios.”
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