Business News
Buy to let market enjoying a resurgence!
Strong rental demand is driving up confidence among buy to let investors, with more than three quarters of UK property buyers considering the purchase of more homes. According to a recent survey, 78% of investors are looking at buying additional investment properties during the next year, but why?
One of the main reasons is to take advantage of rising rental values, particularly in this area. A recent survey showed that 34% of landlords had seen a rise in rental values over the last quarter
Volatile stock markets and some of the lowest deposit rates on record mean more money is being pumped into property. Yields, calculated as a ratio of the annual likely rent against a property's asking price, currently vary between 4 and 7%. Buy to let is proving to be a very attractive alternative to other types of investment!
According to the Council of Mortgage Lenders, buy to let lenders had their busiest quarter since 2008, with them approving mortgages worth £3.5 billion. At the end of the second quarter, there were £1.34 million buy to let mortgages worth £154.5 billion, up from £1.26 million and £148.8billion at the end of the same period in 2010.
Other figures show that the number of buy to let
mortgages on the market rose by a staggering 26% during the last quarter
compared with the one before.
At Beresfords we have seen a noticeable
increase in the number of enquiries received from potential buy to let
investors. Many have become disillusioned with the poor returns offered by more
traditional investment routes, such as building society accounts, shares and
fixed rate bonds. Additionally, recent media speculation concerning the
long-term viability of pensions is also a contributing factor to the resurgence
within the buy to let sector.
Although seasoned investors account for a fair percentage of all new enquiries, we are now being approached by increasing numbers of people who have never been landlords before. They are attracted to this type of investment for a number of reasons. It is flexible, they have complete control over their asset and there is still the prospect of long-term capital growth.
Investing made easy
There are many people who have a keen desire to invest in property but have insufficient time to devote to such ventures. Beresfords dedicated Property Investment Team play a crucial role in assisting clients secure investment properties by dealing with everything on their behalf.Private consultations are available completely free of charge and without obligation. For further information please contact Paul Beresford, Chairman/Managing Director, or Steven Bond, Managing Director of Beresfords Lettings, on 01245 397497 or email investment-team@beresfordsgroup.co.uk.
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