This article by Adam Williams of Mortgage Solutions on October 16th, 2013 tells us that buy-to-let market sustained its growth because landlords continue to expand their portfolios.
Landlords continued to expand their portfolios in the third
quarter of the year as the buy-to-let market sustained recent growth.
The Mortgages for Business index found that all areas
of the buy-to-let market barring semi-commercial investments grew
during the July to September period.
The number of buy-to-let products available rose by 4% compared to
the previous three months and the survey highlighted a strong
acceleration in residential buy-to-let purchases.
Despite this growth remortgaging figures remained high during the
quarter, making up 62% of the total market. Mortgages for Business said
this showed a demand from landlords for extra leverage.
The number of buy-to-let products on the market jumped from 465 to
484 quarter-on-quarter. The number of lenders operating in the sector
remained flat at 27.
David Whittaker, managing director of Mortgages for Business, said:
"It's encouraging to see a sustained improvement in the choice of
different mortgage products for landlords - and that competition should
help drive cheaper deals too.
"Rates remain low, and yields are consistently high, which is
encouraging landlords to increase activity. Confidence is generally high
- among both lenders and investors - which is sparking even more growth
in the sector. There are some other factors driving landlords to
remortgage - for example the continued turning away from the property
market by some Irish banks and RBS.
"However, for the most part there's such a huge amount of interest in
buy to let because of the potential returns on investment. Yields are
even higher just as landlords are starting to see prices rise more
seriously too, so we're expecting this surge of interest to continue.
Fundamentally, demand from tenants is as healthy as ever, and will
remain so for the foreseeable future."
Article Source: http://www.mortgagesolutions.co.uk/mortgage-solutions/news/2300883/jump-in-residential-buy-to-let-property-investment
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