Buy-to-let landlords expanding their portfolios
April 10, 2007 by admin
Filed under News, News-Mortgages
As further evidence of investor confidence in the buy-to-let market, the average number of properties held by buy-to-let landlords has risen to over 11, according to new research.
In November last year, the average landlord owned 10.2 properties, but in February this had risen to an average of 11.1, a study conducted by mortgage lender Paragon has found.
Additionally, the average portfolio has increase in value by seven per cent over the past three months.
“Our buy-to-let index has shown that in recent months rents have been rising faster than house prices,” said Paragon’s managing director John Heron.
“Because of high tenant demand, landlords are able to achieve strong rental incomes and good yields – and are responding by extending their portfolios.”
Such confidence in the sector was mirrored in landlords’ expectations of an eight per cent rise in the size of their portfolios over the next year.
These results suggest that recent interest hikes have not deterred buy-to-let investors from entering the market so far, although they may be tested by next month’s expected quarter-point increase from the Monetary Policy Committee of the Bank of England.
Buy-to-let is growing
February 14, 2007 by admin
Filed under News, News-Mortgages
The buy-to-let market is set to grow in 2007, with the latest figures showing that around one fifth of mortgages will be taken out on homes which will then be rented.
According to Birmingham Midshires, the UK’s biggest buy-to-let mortgage lender, the coming year is likely to see a surge in lending for buy-to-let properties.
The lender carried out a survey of around 2,000 Britons and found that people of all ages are now looking to buy a property as an investment.
It found that 40 per cent of people in their 20s want to invest in a buy-to-let property at some point during 2007, while a quarter of single parents also want to do the same.
“The buy-to-let market has grown consistently over the past decade. When you consider the returns available, in terms of both capital appreciation and rental yield, it’s easy to understand why property investment continues to grow in popularity,” said Tim Hague from Birmingham Midshires.
“A growing number of people see property as an important part of a balanced investment portfolio.”
The buy-to-let market has consistently out-performed other investment opportunities in recent years and, with weekly rents having increased by 1.3 times the rate of inflation in the past ten years, it is understandable why many people are choosing to buy in this way.
