Research carried out by Paragon Mortgages has revealed most landlords in the UK look to invest in areas with which they are already familiar.
The findings show that 86% of landlords in the UK will base their investment decision on how well they understand the market. Tenant demand and rent levels were also noted as important considerations.
Furthermore, the prospect for capital growth, proximity to local transport and future development plans were also shown to be paramount for landlords when planning a purchase. Only 10% surveyed said they would consider investments further afield and 74% said they would look to invest in additional properties close to where they live.
John Heron, Managing Director of Paragon Mortgages, commented: "The buy-to-let sector continues to perform well, with landlords feeling more confident. In fact, 25% of the landlords we surveyed are planning to buy further rental property in the next 12 months alone."