Property investment likely to become increasingly popular
Buy to let investors have been making impressive profits and returns on their investment for many years. Despite the difficult climates in the financial and property markets over the last few years a recent report has shown that the buy to let market has continued to grow and is set to become increasingly popular as the year goes on.
Many reports and officials have pointed out that now is a great time for property investors to take the plunge, as not only are property prices lower than they have been for some time but rental demand continues to climb to record highs, with tenants almost falling over one another to get their hands on privately rented homes given the lack of mortgage availability in the current climate.
According to recently released figures in the first quarter of this year buy to let lending came to nearly £3 billion, which was just a bit lower than the final quarter of last year.
Officials have reported that in the current market buy to let now accounts for 12.3 percent of all outstanding mortgage in terms of value and 11.6 percent in terms of numbers.
The Council of Mortgage Lenders has recently commented on how well the buy to let market is progressing in an essentially difficult environment. A spokesperson for the CML said: “Buy-to-let continues to progress positively in the context of a stable, but still low-volume, overall market.
Demand for rental property remains strong, and as more funding becomes available we would expect to see buy-to-let lending increasing. The performance of buy-to-let loans is also holding up well, and the differential between arrears rates in the buy-to-let sector and the owner-occupier sector has narrowed substantially so that there is now only a modest difference between them.”
It is thought that with property prices much lower in many areas than they were several years ago, and with tenant demand for rental homes set to continue increasing, there are now some very good opportunities for potential investors.
One official stated: “The owner-occupier and buy-to-let mortgage markets are in much the same situation as Kate and Pippa Middleton on the big day last month – all the attention maybe focused on one of them, but in reality, the junior sibling is quietly stealing the show. As house prices flat-line, the buy-to-let market still provides excellent opportunities for investors and professional landlords. And with rental demand likely to remain strong for the rest of the year, these opportunities will continue to be available.”
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Tags: buy to let, buy to let market, property investors, property rental
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