BUY TO LET OUTLOOK IS GOOD.

A

recent report, by both brokers and investors, indicates that there is strong

confidence in the Buy to Let Market.

With

interest rates on banked funds still remaining low, and increased returns on

property proving much more favourable, the Buy to Let Market is being strengthened

by Landlord demand

 

Applications for  buy to let products has increased by over 60

percent in the last year According to Paragon’s Financial Advisor Confidence

Tracking index, 46 per cent of respondents reported an increase in buy-to-let

mortgage transactions.

Landlords in the Private rented sector

have enjoyed a buoyant start to 2011, with growing tenant demand, higher rents

and strengthening yields

The increased demand for rented

properties saw rental prices being pushed up in March, further highlighting the

investment potential within the buy-to-let market.

With first time buyers still facing

difficulty acquiring mortgages, renting is becoming an increasingly popular

alternative. First time buyers who cannot afford to get on the property ladder

are renting at the fastest rate for two years. Not only does renting offer

tenants a more financially feasible option over purchasing property outright,

it provides convenience and flexibility.

According to Paragon the increase in

demand has led directly to a reduction in the void period, that being the

period of time a property remains vacant. Rental properties are being snapped

up at the fastest rate since the beginning of 2009.

The buy-to-let mortgage provider has

launched new specialist products aimed at professional landlords. The three new

mortgage products have fixed rates for two years and are priced at 5.3 per

cent, 5.4 per cent and 5.5 per cent, against LTVs of 65 per cent, 70 per cent

and 75 per cent.

Kevin Cox of  Bristol Letting Agent Igloolets.com said that

“Tenant demand  is set to continue, for

the foreseeable future, as it is still difficult to obtain a mortgage, and

currently more and more mortgage providers are favouring BTL funding., which is

again fuelling competition among provider, which can only be good for the

Market place”