Reduced gearing offers landlords a safe haven

Analysts argue the credit crunch might see some small lenders ditch their portfolios, but research by Paragon suggests small landlords have even lower gearing ratios than their professional counterparts. A survey carried out by the firm claims the proportion of debt to equity in a landlord's portfolio has fallen considerably in the last five years, cancelling out losses from falling rental yields. Nigel Terrington, chief executive of Paragon, says: “Landlords do not have 100% debt, in fact their average debt is just 38% of their portfolio value and their effective yield, even after financ...