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
Showing posts with label landlords. Show all posts
Showing posts with label landlords. Show all posts
Thursday, 17 October 2013
Wednesday, 11 September 2013
Mortgage Lending Booms as Iinterest Rates Hit Record Low
This article by Hilary Osborne of The Guardian on September 10th, 2013 shows that gross mortgage lending reaches highest level since the 2007 crash fueled by government loan schemes and economic optimism.
Gross mortgage lending reached its highest level since 2007 in the second quarter of 2013, as the cost of borrowing fell to the lowest level on record, according to figures from the Bank of England.
Sharp increases in the number of first-time buyers and buy-to-let landlords entering the market fuelled a busy three months for the mortgage industry.
A total of £41.6bn worth of new loans were advanced to borrowers, a 23% increase on the first quarter and 13% higher than in the same period of the previous year.
The quarter-on-quarter leap in lending is the biggest since 2007, when the housing market boom was in its final throes.
Lending to first-time buyers saw a big increase, as banks and building societies became less reluctant to offer mortgages to borrowers with small deposits. The Bank's figures show that the share of the market taken by mortgages at a high loan to value, which it defines as above 90% of the property's price, increased from 2.1% in the first quarter to 2.5%.
The value of mortgages advanced to new entrants in the property market was up by 31% year-on-year, at £8bn. Over the same period new lending for buy-to-let increased from £3.9bn to £5bn.
The mortgage market has been fuelled by a combination of factors, including positive economic data and government stimulus in the form of the Funding for Lending and Help to Buy schemes.
The impact of Funding for Lending, which offers banks and building societies access to cheap funds to encourage them to offer loans to businesses and households, is underlined by the Bank's data for mortgage interest rates.
It shows that the overall average interest rate on gross advances fell to 3.47% in the second quarter – the lowest interest rate on record.
Some of the low rates have encouraged remortgage activity, and net mortgage lending which takes into account repayments and redemptions showed a smaller annual increase than the headline figure, rising by 8.6% to a total of £5.1bn.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "Funding for Lending and Help to Buy are resulting in cheaper mortgage rates, which is encouraging borrowers to finally take the plunge.
"Growing confidence in the housing market as prices rise, particularly in London and the south-east, is also stoking the market."
Earlier, the Royal Institution of Chartered Surveyors became the latest organisation to warn that the Help to Buy scheme could push prices to unaffordable levels.
Rics said house prices in the UK were rising at the fastest pace in almost seven years, echoing similar data from lenders Halifax and Nationwide.
Article Source: http://www.theguardian.com/money/2013/sep/10/mortgage-interest-rate-record
Gross mortgage lending reached its highest level since 2007 in the second quarter of 2013, as the cost of borrowing fell to the lowest level on record, according to figures from the Bank of England.
Sharp increases in the number of first-time buyers and buy-to-let landlords entering the market fuelled a busy three months for the mortgage industry.
A total of £41.6bn worth of new loans were advanced to borrowers, a 23% increase on the first quarter and 13% higher than in the same period of the previous year.
The quarter-on-quarter leap in lending is the biggest since 2007, when the housing market boom was in its final throes.
Lending to first-time buyers saw a big increase, as banks and building societies became less reluctant to offer mortgages to borrowers with small deposits. The Bank's figures show that the share of the market taken by mortgages at a high loan to value, which it defines as above 90% of the property's price, increased from 2.1% in the first quarter to 2.5%.
The value of mortgages advanced to new entrants in the property market was up by 31% year-on-year, at £8bn. Over the same period new lending for buy-to-let increased from £3.9bn to £5bn.
The mortgage market has been fuelled by a combination of factors, including positive economic data and government stimulus in the form of the Funding for Lending and Help to Buy schemes.
The impact of Funding for Lending, which offers banks and building societies access to cheap funds to encourage them to offer loans to businesses and households, is underlined by the Bank's data for mortgage interest rates.
It shows that the overall average interest rate on gross advances fell to 3.47% in the second quarter – the lowest interest rate on record.
Some of the low rates have encouraged remortgage activity, and net mortgage lending which takes into account repayments and redemptions showed a smaller annual increase than the headline figure, rising by 8.6% to a total of £5.1bn.
Mark Harris, chief executive of mortgage broker SPF Private Clients, said: "Funding for Lending and Help to Buy are resulting in cheaper mortgage rates, which is encouraging borrowers to finally take the plunge.
"Growing confidence in the housing market as prices rise, particularly in London and the south-east, is also stoking the market."
Earlier, the Royal Institution of Chartered Surveyors became the latest organisation to warn that the Help to Buy scheme could push prices to unaffordable levels.
Rics said house prices in the UK were rising at the fastest pace in almost seven years, echoing similar data from lenders Halifax and Nationwide.
Article Source: http://www.theguardian.com/money/2013/sep/10/mortgage-interest-rate-record
Thursday, 5 September 2013
UK Government Crackdown on Rogue Landlords Welcome
A new announcement from the UK government that it has set aside £3
million to undertake rogue landlords who treated tenants badly by
placing them in an overcrowded or poorly maintained accommodation is an
indication of the serious nature of the growing problem in the rented
sector as claimed in this latest article on September 4th, 2013 of the Property Wire.
Poor living conditions have a major impact on tenants and on the local community. In some parts of the UK, there are acute problems with clusters of very poor quality properties, which are associated with wider problems such as illegal working, anti social behaviour and illegal immigration.
According to Pat Barber, chairman of the Association of Independent Inventory Clerks (AIIC), a small number of rogue landlords are putting lives at risk and causing problems for local communities.
‘Over the last 12 months, we have seen a rise in the number of properties owned by irresponsible landlords. Overcrowding inevitably causes dangerous health and safety issues,’ she said.
She gave one recent example where a landlord has rented a three bed roomed town flat as a company let to the owner of a restaurant. ‘In a short space of time no less than 17 people were living in there with the landlord’s full knowledge and consent. This only came to light when the letting agent had cause to visit the property after a complaint from a neighbour,’ explained Barber.
‘The living conditions were not only cramped but very dangerous. Escape routes were blocked with rubbish and every available room was being used as a bedroom with furniture piled high across fire exits and windows,’ she added.
She pointed out that the key problem is that there is a growing shortage of affordable accommodation in parts of the UK and rogue landlords are exploiting this and as a result vulnerable and undesirable tenants are seduced by low cost rent, with little or no reference checks.
‘Recent research by the Tenant’s Voice shows that 37% of tenants would not rent another property from their current agent or landlord and that nearly half, 46%, have had deposit disputes,’ said Barber.
‘Nearly 40% of tenants said properties were generally tired and in need of updating and a further 17% said they were dissatisfied or very dissatisfied with the overall condition of the properties they had rented. The government, local authorities, communities and the industry need to work together to remove rogue landlords from the market,’ she added.
The AIIC said that it is committed to excellence and professionalism in the property inventory process and works hard to ensure that all landlords, tenants and letting agents understand the importance and benefits of professionally completed property inventories.
Article Source: http://www.propertywire.com/news/europe/uk-landlords-rental-rogue-201309048192.html
Poor living conditions have a major impact on tenants and on the local community. In some parts of the UK, there are acute problems with clusters of very poor quality properties, which are associated with wider problems such as illegal working, anti social behaviour and illegal immigration.
According to Pat Barber, chairman of the Association of Independent Inventory Clerks (AIIC), a small number of rogue landlords are putting lives at risk and causing problems for local communities.
‘Over the last 12 months, we have seen a rise in the number of properties owned by irresponsible landlords. Overcrowding inevitably causes dangerous health and safety issues,’ she said.
She gave one recent example where a landlord has rented a three bed roomed town flat as a company let to the owner of a restaurant. ‘In a short space of time no less than 17 people were living in there with the landlord’s full knowledge and consent. This only came to light when the letting agent had cause to visit the property after a complaint from a neighbour,’ explained Barber.
‘The living conditions were not only cramped but very dangerous. Escape routes were blocked with rubbish and every available room was being used as a bedroom with furniture piled high across fire exits and windows,’ she added.
She pointed out that the key problem is that there is a growing shortage of affordable accommodation in parts of the UK and rogue landlords are exploiting this and as a result vulnerable and undesirable tenants are seduced by low cost rent, with little or no reference checks.
‘Recent research by the Tenant’s Voice shows that 37% of tenants would not rent another property from their current agent or landlord and that nearly half, 46%, have had deposit disputes,’ said Barber.
‘Nearly 40% of tenants said properties were generally tired and in need of updating and a further 17% said they were dissatisfied or very dissatisfied with the overall condition of the properties they had rented. The government, local authorities, communities and the industry need to work together to remove rogue landlords from the market,’ she added.
The AIIC said that it is committed to excellence and professionalism in the property inventory process and works hard to ensure that all landlords, tenants and letting agents understand the importance and benefits of professionally completed property inventories.
Article Source: http://www.propertywire.com/news/europe/uk-landlords-rental-rogue-201309048192.html
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