Paragon: buy-to-let 'short-term' landlord trend is over

22 2008
Specialist mortgage lender Paragon has today expressed its belief that the credit crunch means landlords will no longer seek to make a quick profit through the buy-to-let market.

Some observers have predicted a surge of speculative activity, which could be bad news for anyone renting a property - either through facing higher rates, or the prospect of being moved on as a result of a purchase.

But Paragon explained that the current market conditions will make such short-term wheeling and dealing particularly tough for landlords.

Chief executive Nigel Terrington told the Daily Telegraph: "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.

"Landlords are expected to be constrained in extending their portfolios by the lower availability of attractive terms on buy-to-let mortgages and by their own risk-averse approach."

Mr Terrington also added that he has not seen any dramatic fluctuation in customer behaviour, and that he expects tenancies to last longer rather than be abruptly cut short.

Paragon focuses on lending to career landlords, whose properties are retained by customers for an average of 16 to 17 years.
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