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The lure of buy to let success is becoming too much for some landlords and despite the continuing tough economic climate, one in eight landlords are looking to purchase more investment properties.

According to Paragon Mortgages, 12% of landlords plan to purchase investment property in the second three months of 2010. Those who listened to good financial advice and those who did the right thing with their investment and their money still have the means to secure another buy to let mortgage and make their portfolio more profitable.

The data suggests landlords should be confident enough to try and get hold of a new loan – Paragon says tenant demand remains strong, with 24% of landlords stating that demand grew during the quarter. They also think tenant demand will strengthen considerably, with nearly four out of 10 landlords forecasting demand for their property to be higher in 12 months’ time.

And it's not just rental income protection that's on the up – the average portfolio value has increased for the second quarter in succession, rising by 6.1% during the period to £1.52m – landlords expect the average value of their portfolios to be 1.2% higher in twelve months’ time.

Nigel Terrington, Paragon chief executive, says: "Demand for property investment has remained strong during the recession and has improved since house prices stabilised. Landlords know that the long-term forecast for tenant demand is extremely healthy, with socio-economic and demographic changes leading to growth in the number of households calling the private rented sector home."

So if you think it's time to build on your portfolio, talk to a buy to let mortgage adviser about your chances of securing a loan. With the right advice and the right mortgage it might just be the right time for more buy to let profits.

SOURCE: Paragon, 14/04/10

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