Paragon Mortgages chief John Heron has called on brokers looking to get into buy-to-let to focus on professionals.
Speaking on a recent Legal and General Mortgage Club webcast, Heron, managing director of Paragon Mortgages, said that intermediaries who are not currently operating in the buy-to-let market should look to professional landlords to grow their business.
Research commissioned by Paragon Mortgages and carried out by BDRC Continental revealed that seven out of 10 professional landlords with 20 plus properties in their portfolio are making a full time living out of their activities. Of those landlords who own between five and 19 rental properties, 44% are making a full time living from their portfolio.
The research also showed that professional landlords generated the highest rental yields in quarter three, with those who own 20 plus properties achieving an average yield of 7.7%. Landlords with a portfolio of 5 to 19 properties generated a yield of 6.5%
Recent government figures also stated that 39% of stock is owned by 5% of landlords, emphasising the importance of the professional landlord market.
Heron said: “Professional landlords are key for intermediaries who are looking to expand their business in the buy-to-let market
