• Majority keep portfolio within 10 miles of main residence • More than a third make offers on properties within a few hours • Family homes are hot tip for best five year investment

Snapping up property as quickly as possible has become a number one trademark of Buy to Let investors. A new report into landlord behaviour commissioned by John Charcol* reveals that investors don't hesitate when it comes to purchasing decisions, with more than a third (38%) making an offer on the last property they purchased within a few hours of viewing. Half of those (19%) actually made an offer while they were viewing the property and a bold 4% offered without ever even seeing the property.

Since the official arrival of buy to let mortgages ten years ago, when the market was dominated by professional investors, more and more people have jumped on board the rental train, to try their hand at property investment. When asked about their first buy to let property, while just over half (57%) of the landlords surveyed said that they specifically purchased a property to rent, more than a fifth (21%) decided to try their hand at renting rather than sell a property they already owned. Another one in ten (9%) inherited a property that they then decided to let out instead of selling.

Ray Boulger, senior technical manager at leading independent mortgage broker John Charcol comments, “In a competitive marketplace, the speed at which landlords are prepared and able to make decisions means that residential buyers – particularly first time buyers who are often competing for the most popular properties for landlords - have to work harder than ever to ensure that they have done their research properly and are able to move as quickly as those who are intending to rent a property out.”

The John Charcol report revealed that location is still a key decision maker for buy to let investors with more than four in five (84%) citing this as being the factor most imperative for success. This feeds through into the fact that the majority of landlords also tend to keep all their investments in one region; for 56% this means within 10 miles of their home and for another 20%, within 50 miles.

Boulger continues, “For any property buyer, location is a crucial factor as it dictates both value, rentability and saleability. For most landlords this not only means considering tenants' expectations in terms of proximity to local amenities and transport links but also sticking to what they know best – the local market - and then buying close to home. Having rental properties near your home can be practical as being on hand to manage their properties could mean cutting costs on managing agents.”

When asked about their predictions for the 'hottest properties' over the next five years, interestingly a quarter of landlords (24%) said that family homes will be sound investment. The new Government licence requirements for Houses in Multiple Occupation (HMO) appear to be driving some landlords away from HMO properties, typically student digs, and towards family houses.

And while the majority (60%) of landlords still believe that flats for young professionals will be the best investment over the next five years, there are concerns that this could lead to over saturation in local markets as has already been seen in some developments. Only one in ten believes that studio flats are worth investing in over the next five years.

Boulger continues: “Studio flats continue to be the least popular rental property, whereas flats for young professionals look set to remain a favourite among buy to let investors. However, landlords are becoming increasingly interested in properties that are suitable to rent to families. In our experience, some families are selling their homes before completing on a new property and so this, along with international families coming to the UK, will have contributed to this demand.

Most important things looked for in Buy to Let properties 1 - Location 2 - Potential for growth in value 3 - Saleability 4 - Condition 5 - Number of bedrooms 6 - Local amenities 7 - Neighbouring properties 8 - Security 9 - Garden 10 - Number of bathrooms Borrowers keen to see how much they could save on their mortgage repayments should either contact John Charcol on 0800 71 81 91 or post a copy of their existing mortgage offer marked clearly “Remortgage Check” to John Charcol, Holbrook House, 10-12 Great Queen St, London, WC2B 5DD. This service is obligation free and consumers are in no way required to act upon the recommendations given. BORROWERS SHOULD CONTACT 0800 71 81 91 OR VISIT www.johncharcol.co.uk

* Research conducted on behalf of John Charcol via The National Landlords Association (NLA). The research took place throughout August 2006 and surveyed 320 registered members of NLA.

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For further information please contact: Drew Wotherspoon Head of Communications Tel: 0845 413 1010 drw@charcol.co.uk

Helen Thomson / Sean Williams Lansons Communications Tel: 020 7294 3604 / 3690

Notes to Editors:

If you transact business through John Charcol, we may charge a broker fee of up to 1% of the sum borrowed for regular applications (No broker fee payable when bought online through www.johncharcol.co.uk). It is John Charcol's usual practice to offset the fee by the amount of commission we expect to receive from the lender. In addition, a £75 booking fee will be payable upon application for any exclusive or semi-exclusive product

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

John Charcol is a trading name of Charcol Limited. Registered office: Holbrook House, 10 - 12 Great Queen Street, London, WC2B 5DD. Registered in England No: 3397767. Charcolonline is a trading name of @Charcol Limited. Registered office: Holbrook House, 10 - 12 Great Queen Street, London, WC2B 5DD. Registered in England No: 03795361. Charcol Limited is authorised and regulated by the Financial Services Authority (FSA reg. 427339). Calls to John Charcol or Charcolonline may be recorded for training and monitoring purposes.