Independent research from the specialist buy-to-let lender Paragon Mortgages has revealed that residential property acquisition activity by landlords remained strong in the first quarter of 2012.

The report, produced by independent researchers BDRC Continental, showed that during the last three months the landlords who responded to the survey had increased their portfolio size by an average of 1.8 properties over the previous 12 months. In Q1 2012 the average portfolio size was 10.8 properties, accommodating 1.3 tenants per property.

540 landlords took part in the survey, and 20% said that they expect to purchase property in the next 12 months. However, of the Paragon Mortgages customers who took part in the survey, 35% said that they expect to add to their portfolio in 2012.

Terraced houses continued to be the most popular property choice for investment (64%), followed by flats (individual units) 57% and semi-detached houses 46%.

Tenant profiles remained largely unchanged in Q1 with young singles still the most prolific tenant type (53%), followed by young couples (51%) and families with children (51%). Attitudes around being a landlord remained positive and 89% of those surveyed said that they are satisfied with their current tenancies.

Of the landlords who took part in the survey, the majority (39%) speak to their tenants every two – three months, and 27% once a month.

John Heron, Director of Paragon Mortgages, said: “It has been a steady and progressive start to 2012. Whilst landlords are still benefiting from attractive market conditions, there is still a long way to go to meet the increasingly high level of tenant demand. More investment across the private rented sector is needed during the coming year to help to meet this demand.”