Buy-to-let landlords’ – buying spree in 2013!!

Buy-to-let landlords will embark on a home buying spree in 2013 while young adults and families remain trapped in rental properties, according to a forecast by one of Britain’s property website (The Guardian).

Three out of four professional landlords will buy more homes in 2013, while the number of “virgin landlords” looking to buy for the first time is running at the highest level for a year, the research from Rightmove found.  Meanwhile, 53% of tenants say they are trapped in renting, wanting to buy a home but unable to afford to do so.

Bank lending to landlords fell sharply during the financial crisis but has surged in recent months, boosted by the funding for lending scheme designed to help small businesses and first time buyers.  Interest rates on buy-to-let loans have tumbled – Skipton, Coventry and Birmingham Midshires all cut rates for landlords last month – and lending volumes are rising.  In the last quarter of 2012, loans to landlords were up 8% to £4.2bn, with new entrants such as Interbay Commercial jostling to offer mortgages of up to £1m spread over 30 years.

Rising rents (yields average 5.7%) and low-cost mortgages (now below 4%) will spur small landlords to buy more properties in 2013, said Rightmove, even if the long-anticipated investment from institutions such as pension funds has failed to materialise.

Rightmove director Miles Shipside said: “While the cavalry charge from major institutions seeking to invest in the private rented sector has so far failed to materialise, private landlords, whether accidental, virgin or professional, are seizing the opportunities that come with having the battlefield to themselves.”

If you’re thinking about investing in property in 2013 and would like some guidance, please contact The Letting Company on 01536 402323 (Northants) or 01733 315020 (Cambs, Rutland and South Lincs) and we will be happy to help.

Thelettingcompany.co is a website owned and managed by Richard Gibbs trading as The Letting Company and our VAT number is 876269571.
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