Buy to let lending will reach £25 billion by the end of 2014, a 25% increase on lending in 2013 according to forecasts by mortgage broker Mortgages for Business.
Lending to buy to let investors is now 135% higher than the trough in 2009 (£8.5 billion) but remains someway below the 2007 peak of £45 billion. Continue reading
Assetz, the buy-to-let specialist, has seen registrations almost double annually as buy-to-let consolidates itself as the investment of choice.
This year (2012/2013) Assetz has received 65,000 live registrations, an 85% increase on last year (35,000 live registrations) and an average of 2,500 new registrations per month. Continue reading
Landlord Assist, the nationwide tenant referencing service, says the influx of new landlords drawn to the sector by the economic downturn have changed the face of the buy-to-let market.
With more people choosing to rent than ever before – due to the high deposits needed to get on the property market – and demand for rental properties forcing prices to record levels, the buy-to-let market has witnessed a broader spectrum of landlords entering the market for the first time. Continue reading
Landlords across the country are hungry for help and advice according to a survey commissioned by specialist buy-to-let lender Paragon Mortgages.
The Q1 BDRC Landlords Panel has shown that 78% of those surveyed have a significant requirement for advice on landlord matters rising to 89% for those owning more than 11 properties. Continue reading
This has increased dramatically from just 23% in the West One Broker Sentiment Survey in August 2012.
Duncan Kreeger, director at peer-to-peer bridging lender West One Loans said, “A generation of renters are demanding somewhere to live – and a growing army of landlords need loans to make the required investments. The latest sky-high rental figures demonstrate that hunger for more investment. But cash-strapped banks are still hesitant to make a serious commitment. The supposed upturn in traditional lending isn’t meeting this need. And unless someone is willing to put their money where their mouth is, that won’t change. That’s Continue reading
In the last 12 months, the proportion of landlords refinancing Houses in Multiple Occupation (HMO) has jumped from 55% in Q4 2011 to 80% in Q4 2012. Similarly, remortgaging on Multi-Unit Freehold Blocks (MUFB) has increased from 76% to 78% year on year.
In particular, investors have been remortgaging lower value HMO property, which has reduced the average loan size on HMOs compared to 12 months ago.
David Whittaker, managing director of Mortgages for Business explains: “Gross yields on buy to let property are particularly attractive at the moment thanks to the mess which the first-time buyer market finds itself in. Property prices Continue reading
High gross yields on residential property – which currently stand at 6.7% – are encouraging landlords to expand their portfolios even further. Of those investors who intend to expand their portfolios this year, almost nine in ten (88%) plan on buying more residential property.
Investment in complex property was less popular, although more landlords plan to purchase Houses in Multiple Occupation (26%) and Multi-Unit Freehold Blocks (16%). Less investors plan to buy semi-commercial property (11%) and commercial property (7%).
Encouragingly, just 6% of landlords say they are planning to trim their portfolios over the next six months, the same proportion as six months Continue reading
John Bagshaw, Corporate Services Director of Connells Survey & Valuation, comments: “November was far from a stellar month for the mortgage market by historic standards, but valuations activity saw annual growth for a second successive month. The seasonal monthly drift down we’d expect at this point in the year has been less pronounced than in previous years – although success has been confined to certain parts of the valuations market, with buy-to-let a star performer.”
New buy-to-let valuations were central to the strength of November’s figures, with a 14% rise in activity in the sector compared to October, leaving buy-to-let Continue reading
Yields on vanilla buy to let increased from 6.1% to 6.7% over the quarter, thanks largely to the average property value of vanilla investments falling by 3% between Q2 and Q3 to £210,197. This helped push up the average LTV up from 64% to 68%, with lenders more willing to grant higher LTV deals thanks to lower property prices.
Similarly, Houses in Multiple Occupation (HMOs) saw yields jump from 9.2% in Q2 to 11.1% in Q3. This was triggered by a sharp increase in refinancing of cheaper HMO property, as these lower value properties tend to have a higher yield than more Continue reading
Professional landlords are more likely than their smaller-scale peers to purchase further rental property, 20% compared to 6%.
Terraced houses have remained a popular investment option. However, this quarter has seen the popularity of flats and maisonettes, semi-detached and detached houses rise to their highest level yet this year.
Types of property landlords plan to invest in during Q4:
* Flats/maisonettes – 58%;
* Terraced houses – 58%;
* Semi-detached houses – 30%;
* Detached houses – 21%;
* Bungalows – 9%;
* Multi-unit blocks – 9%;
* HMOs – 6%
John Heron, Managing Director of Paragon Mortgages, said: "It is very encouraging to see Continue reading