Low Prices for Landlords: but not everyone is confident about the buy to let market
by: MarkeD
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According to myfinances.co.uk, the ARLA conducted a survey in the Private Rental Sector in which twice as many members said that landlords were buying more properties. Half of those asked believed the upsurge in the last quarter was due to the Bank of England's interest rate cuts - which has been seen to be tempting landlords back. The ARLA also highlighted other reasons for the buy to let interest, namely that average weighted rental returns have increased from 4.8 percent to 5.1 percent for houses, and from 4.9 percent to 5 percent for flats.
However, following the positive reports from the ARLA, myfinances.co.uk also implied that a lack of choice amongst buy to let mortgages is causing many to be more pessimistic about the market. A survey by unbiased.co.uk reflected this, showing that a third (28%) of Brits believe those investing in buy to lets are set to make a loss, whilst a quarter (23%) believe that those currently invested in a buy to let property will just break even.
Yet, buy to let insurance and mortgages specialist, David Whittaker, is confident that buy to let mortgages options are available to landlords who are eager and decisive - and he highlights that the biggest problem for those entering the buy to let market could be the projected lack of stock for buyers. He comments that despite government projections that 200,000 houses would be built in 2008, ‘new build levels were only 75,000 in 2008 and even lower figures are expected in 2009 and 2010'.
Whittaker also says that: "Mortgage rates and Loan to values have improved since the beginning of 2009 so purchasers either for owner occupation or for investment are showing more activity." This highlights the importance for prospective landlords to be aware that much of the surveys and data that will be released over the summer is likely to be mixed. This is due to the variety of ways samples are acquired and presented, showing that you should be sure you are getting every side of the story before entering the market, or choosing not to.
Article Source: http://www.ArticleStreet.com/profile/marked-5204.html
About the Author
Find out more about buy to let mortgages at http://www.mortgagesforbusiness.co.uk
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