by Mark Johnston
The Buy To Let Sector in 2013.
The property market still remains full of challenges, but it appears that one sector is however booming…..the buy to let sector, according to the rental industry’s most recent figures.
Current statistics show that the proportion of households renting in the UK has increased in the past decade from 31 per cent to 36 per cent.
David Whittaker, managing director at mortgage for business, says that “tenant demand for residential property is ballooning thanks to the lack of mortgage availability to most first time buyers”.
According to rightmove.co.uk, a leading property search website, average rents in the UK have risen by 13.6 per cent since 2009 and it is now estimated that rents will increase at least a further 2 per cent this year alone.
Analysts feel that with rents continuing to rise the prospects for buy to let as a long term investment continue to be positive.
Some of the leading estate agents have confirmed that typically landlords receive around 7 per cent yields per year; this is far more than can be earned at the moment through most banks and building societies.
However, it is still worth noting that being a landlord is not an easy route to instant financial success.
Andy young from Property Hawk mortgages, states “the buy to let mortgage market has expanded considerably over the past 12 months and there is now more lending and products for landlords to choose from”.
The buy to let sector is expected to remain healthy in 2013 with strong tenant demand, high rental yields and the supply of buy to let mortgage finance seems likely to increase modestly.
So despite the continuing economic uncertainty it dos appear that the majority of all the UK’s landlords remain positive regarding the outlook for the private rental sector in 2013.
Bob young, managing director at CHL mortgages, said that “while economists seem divided on whether 2013 is going to be a good year or not, property investors already seem sure it will be”.
Buy to let industry experts have suggested that given that less than a fifth of landlords expanded their property portfolios in 2012, this supply shortfall could start to be addressed in 2013.
In light of this and according to a recent survey by specialist lender CHL mortgages, a third of landlords they asked have already stated that they intend to expand their property portfolios this coming year.
Therefore it comes as no surprise that most property investors continue to view bricks and mortar as the investment with the best outlook for the at least the next three to five years.
Leading buy to let website, buytoletmortgage.co.uk, is very optimistic about the buy to let market and therefore they feel confident that the sector will grow further over the next 12 months.
In conclusion, it seems that 2013 will see many landlords remortgaging and making new purchases as they try to put themselves in a position to take full advantage of the growing and successful buy to let sector.
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