Paragon slams 'novice' landlords

NOVICE landlords are upsetting the property market in parts of London, specialist buy-to-let mortgage provider Paragon said today. Younger amateurs were being enticed into the market by rising house prices and the poor performance of the share market, Paragon said.

'These novice landlords, less experienced in property selection, have contributed to oversupply in certain geographical locations and for certain property types,' said chief executive Nigel Terrington.

That was leading to lower yields and longer periods when properties lay idle. Prime locations such as Kensington and Knightsbridge were vulnerable.

Paragon, formerly National Home Loans, reported a 49% surge in buy-to-let loans to £240m in the six months to March. Pre-tax profits grew 12% to £20.5m. The bad debt provision was lifted 30% to £10.3m.