A new report has found that one in ten landlords plan to buy new homes for investment purposes this year.
Residential mortgages specialist Paragon has found that ten per cent of landlords want to expand their portfolio, with 65 per cent saying they were keen on terraced housing.
Terraces are the most sought after buy-to-let properties because of their assured quality and popularity with renters across the market, according to the report.
Semi-detached houses were the next most popular at 25 per cent, followed by flats at 20 per cent. Landlords were least likely to invest in the detached property, which only interested ten per cent of those surveyed.
Despite optimism about the property market, most landlords were finding lending criteria tighter.
The specialist said that new landlords were in favour with lenders because they had borrowed less, but more experienced landlords with large portfolios should seek out deals without tough lending ceilings.
John Heron, managing director at Paragon, said: "It is encouraging that landlords are still active in the market and are looking to expand their portfolios.
"With tenant demand at such strong levels and soft house prices presenting the opportunity for bargains, it is easy to see why."
London remains the most desirable location for buy-to-let, with Manchester coming a close second, according to the Residential Landlords Association.
See Also: Property News (6699)
Date Published: 20 January 2010
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