Four in 10 of all landlords believe that the value of their portfolio will increase in 2007, says Paragon Mortgages.
A recent survey of landlords by Paragon found that a further half believed their portfolio value would remain stable, while less than one in 12 believed their portfolio value would decrease.
Despite Novembers interest rate rise, 38% of landlords believing their portfolio value will rise, compared with 35% last quarter.
John Heron, managing director of Paragon Mortgages, says: Both through capital appreciation of their existing portfolios and new property acquisitions, landlords expect their portfolios to increase in value by 2.6% over the next 12 months.
“This compares with an expected rise of just 0.4% two years ago.
House prices remain underpinned by supply constraints and sustained demand from a growing number of households.
“Existing landlords know that the social and demographic factors driving growth in demand for rental properties will continue unabated and their expectations for the next 12 months reflect this.