Landlords hopeful of higher portfolio values

Portfolio values are expected to increase over the next 12 months for landlords, a development that could see demand for landlord insurance to increase.

Paragon Mortgages latest quarterly survey has revealed that landlords expect, on average, a 0.8 per cent increase in the value of their portfolios during the next year.

This is the first positive prediction for more than two years and highlights the resilience of the rental market.

John Heron, Paragon Mortgages' managing director, explained that landlords' expectations have been influenced by house prices falling steadily since the tail-end of 2007.

"It is an encouraging sign that they expect the value of their portfolios to increase over the coming months," he said.

Mr Heron went on to say that landlords have used the cheaper prices to add to their portfolios rather than sell their properties.

The Association of Residential Letting Agents said last month that demand in the rental market had increased for the first time since the onset of the recession.

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