UK 17:49 Saturday, 7 November 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Spreaders. Paragon (PAG) is a company which lends in niche areas like the buy-to-rent market. As you know, more and more people have to rent because deposits on their own homes are too high and mortgages are still hard to get, even if you are an average wage earner.
Already a member? Sign in
• All premium articles
• Tom Winnifrith’s Bearcast
• Access to all the entire nearly 13 year archive
• ShareProphets Daily Newsletter
Cancel any time
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments
BlueFrew
Clause 24 of the Finance Bill 2015. Any investment case relating to Buy to Let must take a view on how this will affect things. My own view is that Buy to Let has been taken up in great numbers, by over leveraged suckers who have bought houses for ridiculous sums for paltry yields. Once these fools start to realise that Clause 24 breaks their business model completely they’ll rush for the exits crushing house prices in the process.
Not only do I think this will happen, I hope it will happen for the long term good of the country. We can’t be competitive on world markets while workers are having to pay so much money to secure shelter.
Others may take a different view of course, that is what makes a market. However PAG has fallen from over 450p to just over 300p, while ALD has gone from about 316p to 210p in recent months. It’s clear that the market doesn’t think that Clause 24 was particularly good news for these firms.
I’ve no position in either of these at the moment, but in the long term (2017/18) I think these look like potentially cracking shorts.