POPULARITY OF BUY TO LET ON THE UP

According to a recent report conducted by the National Landlords Association (NLA), demand for buy-to-let mortgages is increasing as investors look to take advantage of rising rental yields.  This is causing lenders to expand their buy-to-let mortgage offerings and approve a higher number of loans and at greater values.

A survey by the NLA's mortgage broker division found that the number of buy-to-let schemes provided during the second quarter of 2011 grew by 25 per cent when compared to the first three months of the year.

Meanwhile, average loan sizes increased by £2,166 to £138,525.80, representing a growth of 6.4 per cent since January.

The NLA said this growth was largely down to the greater number of lenders offering higher loan-to-value (LTV) mortgages and the availability of finance for Houses of Multiple Occupation.

The figures revealed that over 50 per cent of buy-to-let offers processed by NLA Mortgages were for loans over 70 per cent LTV - resulting in an average LTV of 67 per cent for the quarter.

The findings by NLA Mortgages are very positive. Landlords provide a valuable source of housing at a time when tenants are finding it increasingly difficult to find properties to rent and mortgage products that encourage greater investment in the private-rented sector should be encouraged” 

On a local level Hayfield Robinson Lettings & Management have seen a notable increase in investors looking to grow their rental portfolios and take advantage of their Investor service.  Lee Bilbrough, director, commented “ Many of our existing landlords are again looking at residential property as the place to invest and we have been able to source some very good deals on their behalf.  I do however recommend serious consideration is given to the property type and location and urge investors not to base their decision on price alone.  Even in this strong market certain property types are sticking so buying the right property in the right area remains the key to a successful investment”.

With interest rates still at record lows and predicted to stay that way for some time residential property is becoming increasingly attractive to investors.  If you are considering a Buy to Let or would like more general advice on the lettings market then please feel free to contact Lee Bilbrough on 01535 600097 or lee@hayfieldrobinson.co.uk