Mortgage Blog: Now Is The Time To Become A Landlord
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by: Keith Osborne
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Word Count: 464
Date: Tue, 21 Feb 2012 Time: 6:52 AM
As someone interested in new-build property, you may well have thought about buying this year. Now, a leading estate agency has found that the number of people renting a property rose by a quarter in 2011. So, isn't this the perfect time to be considering a property investment?
In addition, a report from the Council of Mortgage Lenders (CML) recently showed that the number of buy-to-let properties in the UK rose by 84,000 last year. This combination of factors means it is the perfect time to invest in property. Keep reading to learn why.
Demand for rental property rose sharply in 2011 New figures from Countrywide estate agency found that applications by new tenants reached 275,000 in 2011. This represented a rise of almost 25% on 2010. But what's driving the explosion in rental demand? Well, the Financial Times reports that "the increase in renting underscores the difficulties facing many homebuyers, who have suffered from an insipid mortgage market characterised by prohibitively high deposit requirements and an aversion to risk on the part of the banks". And experts believe rents are set to continue to rise despite some minor falls in late 2011.
Matt Hutchinson, director of flat and house share website spareroom.co.uk, says: "Demand is still significantly outstripping supply of new rental stock. We would expect to see upward pressure on rents resume in early 2012."
So, ever increasing numbers of people are looking for good-quality rental accommodation. Becoming a landlord can help meet this demand. It also generates income and capital growth for you. And, buy-to-let mortgages remain widely available.
Number of buy-to-let properties also on the rise
The latest data from the CML shows that the number of buy-to-let properties increased by 84,000 in 2011. Buy-to-let mortgages account for nearly 13% of the total outstanding value of mortgages in the UK. In addition, buy-to-let lending represented 11% of all lending in the fourth quarter of 2011.
Leading new homes website whathouse.co.uk believes these factors make it a great time to buy. He says: "Canny investors understand that now is the time to buy property. With demand for rental property increasing by a quarter in 2011, there continues to be a shortage of good-quality accommodation. And, with lenders agreeing more and more buy-to-let mortgages, there is certainly the money in the market to fund your investment property purchase."
CML director general Paul Smee agrees, saying: "Buy-to-let lending continues to perform well. Demand for rented property remains high...and there is little reason to foresee any change to this positive outlook for the sector. [Buy-to-let lending] is performing a really important role within the overall housing market. The benefits of the availability of good quality, private rented housing should not be overlooked, especially as there are many households which need the flexibility and mobility that the private rented sector is well placed to provide."
About the Author
Whathouse.co.uk is the web portal for homes and houses for sale in Britain, the online face of What House?, which has promoted the best of new homes in Britain for over 100 years. Our site features hundreds of new-build homes in the UK as well as news, articles, expert advice, opinion and comment.
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