10-03-2008
Buy-to-let booming
News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
The UK's buy-to-let market is going from strength to strength, according to one letting agent.
Your Move claimed that leases commencing in the first two months of 2008 represented a 21 per cent increase compared to the same period last year.
The credit crunch has resulted in a "pronounced" increase in tenant demand, the letting agent suggested, adding that buy-to-let is set to continue to boom.
David Newnes, managing director of Your Move, said the start of 2008 has seen "considerable" growth in the buy-to-let market.
He added that buy-to-let is "filling the gap" left by first-time buyers unable to get together a substantial deposit or secure a mortgage with a high loan-to-value.
Mr Newnes added that buy-to-let investors are "in a strong position" to expand their property portfolios.
"The demand is definitely there," he concluded.
Commenting on the monetary policy committee's decision last week to maintain interest rates at 5.25 per cent, Alliance & Leicester's Mark Blackwell suggested buy-to-let landlords continue to see "high levels of occupancy and improved rental yields" as potential first-time buyers delay their first property purchase.