More landlords 'remortgaging to expand portfolios'
by Sarah Ashcroft
An increasing number of landlords are looking to remortgage their properties in order to free up funds in a bid to buy further homes and office space, new research from haart as revealed.
According to the estate and letting agent, the percentage of buy-to-let remortgage applications was at its highest level of 2012 so far in August.
In addition, more property owners were opting for fixed rate deals, with this figure increasing to 62.1 per cent - the highest it has been for many months - while the number choosing discounted or tracker rates fell by ten per cent to 37.9 per cent.
The data was recorded in the wake of a rise in the number of people choosing to rent property over the last 12 to 18 months, which is reflected in double-digit increases in average rents in certain parts of the UK.
It comes after research carried out by LSL Property Services last month revealed nearly half of landlords believe now is a good time to invest as demand for rental accommodation grows.
Weak conditions in the hosing market, coupled with low approval rates, has meant an increasing number of individuals are being forced into renting homes, while the rise in demand from tenants has caused the cost of leasing to surge.
With the average monthly rent standing at £725 - which is the highest level since October 2011 - investors' confidence in the market has driven many to expand their property portfolios
Commenting on the findings, David Brown - commercial director of LSL Property Services - said: "House prices are still subdued in many parts of the country and tenant demand is still growing.
"This is presenting landlords with the opportunity to secure strong yields on properties, and boosting confidence in buy-to-let as a long-term investment."
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Published on: September 24, 2012
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