Paragon Bank has found that landlords are prioritising that their properties are suitable for their preferred tenant type over profits.

The research into landlord investment strategies, undertaken for Paragon’s Landlord Report 2022, found that when expanding portfolios, the top priority is ensuring that properties are suitable for their preferred tenant type, chosen by just over half, 51%, of the 621 landlords surveyed.

This is followed by familiarity with the local area, chosen by 48% of landlords, and close proximity to their own homes, a priority for four in 10.

Financial aspects of investments were less important to landlords. The potential for capital gains is prioritised by 37%, purchasing for high yields a primary strategy for 32% and low purchase price a key factor for 31% of landlords.

Richard Rowntree, managing director for mortgages, said: “It’s interesting to see that considering how properties meet the needs of tenants is central to landlords’ investment strategy and more important than generating high yields or capital appreciation. This is perhaps at odds with the negative perception of landlords who are sometimes viewed as placing profits above people.

“Highlighting such misconceptions and helping people to better understand buy-to-let investors is what we’ve set out to do with our Landlord Report, something we hope will be valuable for brokers and others within the mortgage industry.”