Landlords show "renewed" confidence

Landlords showed "renewed" confidence in their industry during the third quarter of 2009 in a new study.

Findings from Paragon Mortgages' PRS Trends report revealed that many landlords anticipate the value of their portfolio will increase during the next 12 months.

The research showed that landlords have used the weakness of the property market to expand their portfolios - they owned an average of 12 properties in the third quarter of the year, up from the average of 11 seen at the start of 2007.

A third of landlords questioned said that they anticipate tenant demand to increase during the next year.

Nigel Terrington, Paragon Group chief executive, said: "Landlords are reporting that tenant demand continues to be strong. This has been a recurrent theme throughout both 2008 and 2009 as people are either unwilling or unable to purchase property and decide to rent instead."

He added that the mainstream mortgage market is unlikely to recover for many years

Further findings revealed that 60 per cent of landlords think tenant demand will stay the same over the next 12 months.

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