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Optimism among buy-to-let landlords remains at a record high with one in three expecting the net value of their portfolios to increase next year.

And one in five plan to buy property in the first quarter of 2014, according to a new report by specialist buy-to-let lender Paragon Mortgages

Landlords are looking to 2014 with a growing sense of optimism for the wider buy-to-let market and the performance of their rental portfolios.

Paragon's survey of around 200 landlords found that 38% are feeling optimistic about the prospects for their portfolio.

Landlord optimism should continue to grow next year, said John Heron, director of mortgages at Paragon.

“2013 has been a good year for buy-to-let and landlords certainly seem to be more active in the market."

He said buy-to-let lending market should total around £20 billion in 2013. "While this would represent a material level of growth over 2012 we should keep things in perspective. This only takes us back to the level of lending that we had 10 years ago and over that period the private rented sector has increased by 80%.

"Any talk of boom conditions in the buy-to-let market would appear to be premature indeed.”

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