For many people Buy to Let is becoming a mainstream alternative to traditional investments such as pensions and the stock market. Mintel reports that 3% of homeowners are considering buying another property to let by 2010, doubling the number of current landlords.
The ‘Buy To Let Business’ mortgage specialists executive Tanveer Karim “Despite the tax relief benefits, many people today are exchanging their traditional pension for property. With pensions not offering their previous returns and the real cost of living accelerating at an alarming rate, property investment continues to grow in popularity as an alternative investment vehicle.”
Last year saw significant number of landlords in the private rented sector drop out of UK Buy To Let Houses in Multiple Occupation ownership. The decline was revealed in a Review and Index published by the Association of Residential Letting Agents (ARLA). In October 2006 The HMO share of the whole rental sector dropped from nine percent to six percent this coinciding with the requirement to register the properties with local authorities and could represent a loss of as many as 75,000 properties to the multiple sharer market. The lack of HMO property and the demand from a rising student population makes HMO now very attractive.
Student HMO Buy To Let Property set to get investors rushing for their cheque books
In 2006, Buy to Let lending accounted for 11% of all mortgage lending figures and the Council of Mortgage lenders (CML) revealed the buy-to-let sector turnover amounted to £38.4 billion of all mortgages processed. Historically low interest rates and less restrictive tenancy agreements have all helped fuel the buy-to-let market. Mortgage lenders have grown more confident in the buy-to-let sector and they are currently offering more attractive buy-to-let mortgage deals. Ying Tan, Managing Director of Buy To Let Business comments “Investors are seeing the benefits of investing in bricks and mortar and good returns in the buy-to-let market continue to be achieved by the astute investor, as long as you manage your risks, and conduct thorough due diligence. Our only word of warning would be to keep an eye on the ever changing legislation which can catch out the uninitiated”.
