UK Property Portfolio Values Increase

The rises in house prices across the United Kingdom have been reflected in the overall value of portfolios of landlords - investors interested in residential property.

In the first quarter of 2010 it has grown to £1.52 million (a 6.1% increase). The figure is more than 4% up from that registered in the 4th quarter of 2009.

It is worth noting that these are the 2 consecutive rises since the year of 2008, which was characterised by decreasing house prices and wide availability of buy-to-let mortgages.

The research carried out by Paragon Mortgages showed that the value of landlords' portfolios is set to increase a further 1.2% by 2011.

As for landlords, the vast majority (83%) is determined that house and portfolio values will stay the same, whereas 19% believe they will increase. Only 8% of landlords expect investment portfolio values to fall in the near future.

Commenting on the findings, Mr. John Heron of Paragon Mortgages said that landlords’ confidence in portfolio values is the highest since the year of 2007.