Tuesday, February 21, 2006

Increased demand for rental properties

Assetz News - Buy-to-let rides crest of a wave
20th February 2006

The number of buy-to-let mortgages advanced to landlords has jumped considerably in recent months, it has been revealed.

Landlords in the UK are buying more property, recent research has shown, and that has been backed up by the results of the latest figures from the Council of Mortgage Lenders (CML), which show record levels of buy-to-let loans in recent months.

The figures from the CML reveal that a record 130,400 loans were advanced during the second half of 2005, representing a massive 39 per cent rise from the first six months of the year, as many people began to look towards the buy-to-let sector.

Those results come following the announcement last week that nearly a third of landlords are currently buying new properties and adding to their portfolios in an effort to take advantage of the boom in the buy-to-let property sector. With prices still relatively stagnant, it is proving to be a popular time to buy for landlords, because many people looking to get a foot on the first rung of the property ladder still find the majority of properties too expensive.

As a result, there is an increasing demand for rental properties, with many of those unable to get onto the property ladder preferring to rent than shell out large amounts for a property. But while many people are willing to rent, it is the time for property investors to make their move in the property market, as prices are expected to increase over 2006, meaning that it is more prudent to buy now than wait until later in the year.

Recent surveys have shown that young people are overwhelmingly in favour of renting property in a popular, up and coming area rather than spend their money purchasing a property"

It's heartening to see signs of optimism in buy to let.

Chris Bell