The number of buy-to-let loans being taken out is at its highest level in four years. Around £1 in every £7 lent on mortgages last year went to landlords – a total of £16.4 billion. This just goes to …
The number of buy-to-let loans being taken out is at its highest level in four years. Around £1 in every £7 lent on mortgages last year went to landlords – a total of £16.4 billion. This just goes to show the scale of the market and the degree to which people are looking to invest in buy to let property in this day and age. There are also no end of agents able to help private portfolio managers in running their properties.
Falling house prices in many parts of the country have prompted existing landlords to snap up more properties. This has been very much the case for landlords with money in the bank, ready to invest. They are blessed as they are able invest now and wait for the market to recover and the value of property to increase hand in hand. Banks and building societies, who are worried about lending to ordinary homebuyers, are happy to lend to landlords, who are viewed as less of a risk. To add to this also, hundreds of existing homeowners are dipping their toe in to buy-to-let for the first time. There are some people in this who are also quitting their careers to get into rental property as a means of an income.
It needs to for sure be remembered, with the dire savings rates on offer at banks, the returns on buy-to-let look appealing. This can also be helped by the fact there is a high demand at present for rental houses and flats. The latter has come as a result of the fact that property for sale in the UK has been through a boom and house prices have been seen to out price the chances of first time buyers being able to buy. High property prices and tough deposit requirements mean first-time buyers are struggling to get on the property ladder. As a result, they are being forced to rent for longer than originally planned.
Before you get carried away building your property empire, you need to be sure it is right for you. It is a huge commitment, and though you could make a big profit on your property, it needs to be thought of as a business, not an investment. You need to work out what you need to make to make the business side feasible and you need to work out how you can make property right and ideal for you.