Latest Landlord News….
With the expansion of the private rental sector gathering pace by the day, landlords and property investors are demanding more variety in the mortgage products offered by the banks. It seems that 2011 may be the year
that those demands are met and we see a buy-to-let revival.
Before the recent recession, there were over 3000 buy-to-let products available to investors. As the economy took a turn for the worst, the banks’ appetite and ability to lend money disappeared quicker than the complimentary buffet at a property fair. As we know, the British government rode to the rescue bailing out some of our largest mortgage lenders and now after some gentle persuasion the housing market will soon receive the welcome boost of fresh buy-to-let products.
At the moment, the variety of buy-to-let mortgages is only a small percentage of those available during the high point in the middle of the last decade. Over the last couple of weeks we have seen a number of lenders dipping their toe into the buy-to-let market and this trend looks set to continue through 2011 and into 2012. In fact, the next couple of months may be the ideal time to invest. With the rise in inflation looking set to force the hand of the Bank of England into increasing interest rates sooner rather than later, and property prices continuing their decline in the wider housing market, 2011 may be presenting new and current investors with the perfect conditions to seize their chance and secure a bargain.
The lack of competition in this sector of the mortgage industry is one draw back which is currently keeping fees higher than market value, but as more options become available then landlords and property investors should be able to shop around for better deals. The private rental sector currently has a demand greater than it can cope with. The stagnation in the housing market has compounded the situation for first-time buyers wishing to step onto the property ladder. Increases in the cost of living are making rental not only a more attractive option, but in many cases it is the only
option. Maybe now is the time to look again at buy-to-let.
Whether you are a first time property investor or an experienced landlord make sure you have expert property advice on your side. Legal 4 Landlords provide a wide range of services including EPC, Tenant Referencing, Deposit Registration and Eviction.