In light of the current rental market and the high demand from tenants, it is not surprising that landlords want to profit from the trend.

Landlords are trying to meet demand and profit from the buy-to-let market by adding to their portfolios. They are doing so by remortgaging their existing properties as a source for funding a larger portfolio. Reports have shown that landlords are demanding better and more varied remortgage offers from lenders in order to do this.

More than one third of buy-to-let cases in the third quarter of this year were remortgage applications. Paragon says that over four in ten of their landlord customers are now growing their portfolio. According to Paragon, 42% of mortgage brokers said more than half of their buy-to-let cases during the period were landlords looking to add to their buy-to-let portfolios.

John Heron, Managing Director of Paragon Mortgages, said: "There is incredible pressure now on rental stock. Letting agents in many regions are reporting that they simply do not have properties available for an increasing number of potential renters. In order to meet the increasing level of demand, landlords need to continue to grow their portfolio."

"It is very encouraging that intermediaries are seeing an increase in landlord clients looking to add properties to their portfolios in the coming months."