Can landlords benefit from buy-to-let 'boom'?
by Sarah Ashcroft
A growing number of individuals are opting to apply for buy-to-let mortgages in the current economic climate in a bid to make the most of a safe investment.
An article published in the Daily Express
yesterday (November 21st) revealed that thousands of prospective proprietors are registering to become a landlord every month, as cash-strapped consumers decide that renting is a more realistic option at the moment.
Stuart Law, chief executive of property advisor Assetz, told the news provider that growth in the buy-to-let sector is expected to continue into the foreseeable future due to the potential for long-term capital growth.
According to recent figures from the Council of Mortgage Lenders, the number of individuals entering the market has increased by 20 per cent during the first nine months of 2012, compared with the same period in 2011.
explained that three factors are currently boosting the rental industry: cheap mortgage rates, sky-rocketing demand for homes and low property prices brought about due to the difficulty many Britons are experiencing when looking to climb the mortgage ladder.
Analysts have pointed towards a thriving buy-to-let sector in prime central areas of London, as the average rent increased by 12 per cent last year, as demand from tenants continues to outstrip supply.
In addition, yields enjoyed by landlords across the country are on the rise - with the average return standing at 6.7 per cent every year - rising from 6.2 per cent in June, figures from Paragon Mortgages have revealed.
Dan McLeod, director of estate agent Atkinson McLeod, said: "The casino approach, where people were simply betting on short-term capital appreciation, is a thing of the past.
"Landlords are increasingly taking a 10-year view and are focused on rental yield, as they should always have done."
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Published on: November 22, 2012
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