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BTL Boom fuelled by rising rents
Graham_Devon
Posts: 58,560 Forumite
All sounds a bit 2007 to me, what with people rushing in and a boom being called. Understand that it won't to others though.
http://www.guardian.co.uk/money/2011/oct/22/new-buy-to-let-boom
On the rental side, you have rental agents suggesting the government should do more to help BTL owners.
On the other, you have a communities and local government minister stating that rental in the private sector are destroying family life.
Demand for buy-to-let mortgages has increased significantly in recent months as landlords rush to cash in on the continuing boom in rental prices, according to the Bank of England. The scramble to purchase rental properties is even leading would-be buyers to put in sealed bids in some areas of the south-east.
In its latest Trends in Lending Report the Bank said most major UK lenders reported demand for buy-to-let lending continuing to increase over the summer, reflecting rising rental yields. Rents rose in every region of the UK in September 2011, pushing the average rent to a record high of £718 per month – £1,029 in London – according to the latest LSL Property Services buy-to-let index. Lea Karasavvas, director of broker Prolific Mortgage Finance, says this is driving demand for properties: "We're having sealed bids with buy-to-lets because the rental market is just so strong."
Landlords are now getting an average yield of 5.3%, up from 5.2% in August, LSL says. Meanwhile, tenant arrears have dropped to their lowest level since April 2010, with just 8.6% of all UK rent unpaid or late by the end of September.
http://www.guardian.co.uk/money/2011/oct/22/new-buy-to-let-boom
On the rental side, you have rental agents suggesting the government should do more to help BTL owners.
On the other, you have a communities and local government minister stating that rental in the private sector are destroying family life.
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Comments
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Graham_Devon wrote: »On the rental side, you have rental agents suggesting the government should do more to help BTL owners.
On the other, you have a communities and local government minister stating that rental in the private sector are destroying family life.
We have to decide between a letting agent and a politician?
Christ its like Sophie's Choice.0 -
We have to decide between a letting agent and a politician?
Christ its like Sophie's Choice.
Fraid so!
Well...theres the pricedout campaign that have their say, but if I'd have highlighted that, I would have been leaving myself with a noose around my neck ready to be hung drawn and quartered!
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Graham_Devon wrote: »All sounds a bit 2007 to me, what with people rushing in and a boom being called. Understand that it won't to others though.
Might sound it but with mortgage lending at near historical lows it can't be much of a boom in reality can it?0 -
Landlords are now getting an average yield of 5.3%, up from 5.2% in August, LSL says. Meanwhile, tenant arrears have dropped to their lowest level since April 2010, with just 8.6% of all UK rent unpaid or late by the end of September.
Better arrears figures, decent yields and an asset that's being paid for by a tenant. Is it any surprise that BTL is receiving some investor interest?0 -
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Graham_Devon wrote: »On the other, you have a communities and local government minister stating that rental in the private sector are destroying family life.
Well, you can always leave it to the government to sort out. I didn't see NuLabour build one council house in its entire 13 years of government.
Party of the poor, yeah right.0 -
Well, you can always leave it to the government to sort out. I didn't see NuLabour build one council house in its entire 13 years of government.
Party of the poor, yeah right.
most social housing is built by housing associations which are essentially fully funded by the state
which is why social house building has ceased
so maybe labour didn't actually build a house but they essentially funded quite a few0 -
most social housing is built by housing associations which are essentially fully funded by the state
which is why social house building has ceased
so maybe labour didn't actually build a house but they essentially funded quite a few
Housing association is not council housing, there is a world of difference.
If you have lived in both (as I have many years ago) you would know that.0 -
be interesting to know how the two differ?-i have a letting property in a central location and it is mainly HA that dominates the letting.mfw'11 No68- 55k mortgage İO--little to nothing saved! i must do better.0
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