Bright future for buy-to-let
Posted: 29 Mar 2006 10:51:18 GMT
Residential property investment is looking like a sensible option this year, with new data suggesting that the sector will be buoyant for some time.
The Council of Mortgage Lenders (CML), for instance, recently observed a 40 per cent increase in the number of advances made in the second half of 2005 compared to the first six months.
The value of the new advances reached £14.6 billion in the second half of 2005, which was the highest ever figure reported by the CML for buy-to-let advances.
It would seem that this landlord confidence is justified, with the Royal Institution of Chartered Surveyors (Rics) finding that the increase in tenant demand in the three months to January 2006 was the highest for almost five years.
Encouragingly, there is no longer any stigma attached to living in rented accommodation and landlords are accordingly finding that there is a steady stream of tenants willing to move into their properties.
Confidence is not limited to the buy-to-let sector, however, and the Office of the Deputy Prime Minister (ODPM) has predicted that the number of households in England will have risen from 20.9 million in 2003 to 25.7 million by 2026.
John Heron, managing director of Paragon Mortgages, said: "CML lending data, survey reports from the surveying profession, household predictions from the ODPM and factual evidence from our own book all tell the same upbeat story. The trends in the private rented sector are clearly positive and buy-to-let is looking rosier than it has for some time."
While buy-to-let investors are becoming increasingly savvy in their business, buyers and sellers are also learning to make the most of their money as the market develops. Many are now choosing to buy or sell property online, with private selling on the internet saving a significant amount of money that is typically spent on estate agents.