Confidence in the private sector is on the up, with nearly a third of landlords reporting rising tenant demand and one in five planning to invest in the next quarter, according to Paragon Mortgages.
Paragon's survey revealed that 29% of landlords saw tenant demand increase in the second quarter of the year, compared to 10% who reported a fall.
This is up on the first quarter of the year when 24% of landlords saw rising demand and 8% saw a decrease.
The majority of landlords (54%) said that tenant demand was stable during the second quarter, while 7% said they were unsure which direction demand was heading.
Paragon's figures showed that landlords are confident that tenant demand will continue to strengthen, with 35% expecting demand to be higher in 12 months, while 8% forecast a decline.
This confidence is also reflected in that 21% of landlords surveyed intend to invest in further property during the third quarter, compared to just 12% in the last quarter.
However, securing buy-to-let mortgage funding continues to be a problem, with over half finding it more difficult, while just 13% said it was easier.
Nigel Terrington, chief executive of Paragon Group, said:
"Strong tenant demand is great news for landlords, but will lead to rental inflation for tenants unless the private rented sector is able to expand to meet this demand. Pressure is building on the finite number of properties in the sector because the lack of buy-to-let mortgage availability has prevented landlords from growing their property portfolios."
He added: "There is obviously a dislocation between landlords' intention to purchase and their actual ability to do so given the continued scarcity of buy-to-let mortgage finance.
"However, our survey confirms that landlords still value residential property as an investment vehicle."
Showing posts with label buy-to-let. Show all posts
Showing posts with label buy-to-let. Show all posts
Monday, 19 July 2010
Friday, 25 June 2010
Mortgage rates could drop further
The interest rates charged on mortgage loans could fall further this year.
The Centre for Economics and Business Research (CEBR) is predicting a slowdown in UK economic growth as a result of yesterday’s Budget, which it says could result in the Bank of England Base Rate staying at its current level of 0.5% until the end of 2012.
The continuing low Base Rate could prompt lenders to reduce mortgage rates from an average of around 4% to 3% by early next year, according to the CEBR.
The news comes hot on the heels of a report from data website Moneyfacts, which revealed that mortagage rates have fallen to a seven year low.
The average rate on a two-year fixed rate mortgage deal now stands at 4.52%, its lowest level since September 2003.
The cost of fixed rate mortgage deals has been falling since September last year.
Among the best two-year fixed rate mortgages currently available are a deal from The Co-operative Bank at a rate of 2.95% and a deal from HSBC at 2.99%.
Yorkshire Building Society also offers a two-year fixed rate mortgage deal at 3.05%.
The Centre for Economics and Business Research (CEBR) is predicting a slowdown in UK economic growth as a result of yesterday’s Budget, which it says could result in the Bank of England Base Rate staying at its current level of 0.5% until the end of 2012.
The continuing low Base Rate could prompt lenders to reduce mortgage rates from an average of around 4% to 3% by early next year, according to the CEBR.
The news comes hot on the heels of a report from data website Moneyfacts, which revealed that mortagage rates have fallen to a seven year low.
The average rate on a two-year fixed rate mortgage deal now stands at 4.52%, its lowest level since September 2003.
The cost of fixed rate mortgage deals has been falling since September last year.
Among the best two-year fixed rate mortgages currently available are a deal from The Co-operative Bank at a rate of 2.95% and a deal from HSBC at 2.99%.
Yorkshire Building Society also offers a two-year fixed rate mortgage deal at 3.05%.
Saturday, 5 September 2009
Buy to let mortgages fail to meet demand
New research suggests that the supply of buy-to-let deals on the mortgage market is not enough given the number of people currently searching for them.Conducted by moneysupermarket.com, the report showed interest in buy-to-let mortgages has increased by 50 per cent since August 2008, while lenders have withdrawn 70 per cent of the products off the shelves in the same period.
The recent cuts in the base rate have also meant that mainstream mortgage interest has come down by an average of 1.95 per cent in the past 12 months, but buy-to-let rates have only seen a 1.13 per cent typical drop.
Hannah-Mercedes Skenfield, mortgage channel manager at moneysupermarket.com, said: "New and existing buy-to-let landlords face a difficult task in finding a suitable mortgage. Because banks are targeting safer borrowers for their limited mortgage funds, they have either abandoned or severely restricted their involvement in the buy-to-let market .
"Mortgage broker the Money Centre recently signed a collaborative deal with Smartlandlord.co.uk in order to provide property owners new products for the buy-to-let market
The recent cuts in the base rate have also meant that mainstream mortgage interest has come down by an average of 1.95 per cent in the past 12 months, but buy-to-let rates have only seen a 1.13 per cent typical drop.
Hannah-Mercedes Skenfield, mortgage channel manager at moneysupermarket.com, said: "New and existing buy-to-let landlords face a difficult task in finding a suitable mortgage. Because banks are targeting safer borrowers for their limited mortgage funds, they have either abandoned or severely restricted their involvement in the buy-to-let market .
"Mortgage broker the Money Centre recently signed a collaborative deal with Smartlandlord.co.uk in order to provide property owners new products for the buy-to-let market
Subscribe to:
Posts (Atom)
