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Buy-to-Let Special Report States “Increasing Shift Towards Areas with Higher Yields”
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The Mortgage Lender has commissioned a special report, which has found that buy-to-let investors are increasingly on the look out for properties that are cheaper and result in a higher yield.
Martin Ellis, the UK’s leading housing economist, is the author of the report. He has also predicted a rise in interest rates by 0.25% within the next few months and that house price growth will increase by no more than 2-3% by the end of this year.
Peter Beaumont, The Mortgage Lender deputy chief executive, said: “Our special report on the buy-to-let market looks at the macro and micro economic environment for buy-to-let investors and the factors that are likely to influence landlords’ investment choices over the coming years.
“It also highlights the need for a flexible and competitive buy to let mortgage market to facilitate continuing investment in a sector of the housing market that has grown in significance as home ownership has declined and demand for good quality residential property has increased.”
Currently, buy-to-let mortgages represent nearly 13% of new mortgage lending in the UK. It has fallen by 28% in 2017 and is now at £10.7 billion, in comparison to £14.9 billion in 2016. However, despite this fall, 2017 still saw growth, with an annual average 67% higher than what it was in the period from 2009 to 2013.
Buy-to-let remortgage activity has also been stable, with the volume of lending in 2017 only 0.6% lower than it was in 2016.
There has been a considerable amount of growth within the private rented sector (PRS) in recent years. 4.7m households in England are currently renting privately, which amounts to one in five. 46% of those aged 25-34 years old live in the PRS. This is almost double the statistic from 2006, which stood at 24%. The amount of tenants aged 35-44 years old in the PRS has also substantially increased over the last ten years, from 11% to 29%.
