Paragon Mortgages’ Q1 2005 survey of mortgage advisers and brokers has revealed a rise in the number of landlords increasing their portfolios and a fall in the number of ‘novice’ first-time buyer landlords. Paragon say this suggests the buy-to-let market is beginning to mature after a period of strong growth.

The proportion of landlords expanding their portfolios rose this quarter from 39% to 41%, while the number of people buying their first investment property declined from 27% to 24%.

Remortgages arranged by brokers and mortgage advisers have increased slightly, from 28% of the total last quarter to 29% this quarter.

The long-term trend of landlords expanding their portfolios has been generally upward over the past two years or so, rising from 37% in April 2002 to 41% now, while people purchasing their first investment property have dwindled from almost 39% in April 2002 to 24% now.

Paragon Mortgages’ managing director John Heron comments: "The typical landlord is becoming more experienced and is likely to be adding to his buy-to-let portfolio rather than buying his first investment property. This growing level of landlord expertise is welcome from the lender’s point of view as it makes buy-to-let business safer and more sustainable, particularly as a landlord will only buy an additional property if he is having a satisfactory experience with his existing portfolio."