UK buy-to-let market has a bright future

Posted under Advice, General by Alan

Michael Ball, a speaker at the Mortgage Strategy’s Buy-to-let Summit, used statistics that reveal that the let-to-buy has a positive future. Ball is a professor of urban and property economics at Reading University.

He said that long-term forecast for the buy-to-let segment is exceedingly good. Demand for rental property tends to go up when the market is slow. Figures showed that buy-to-let lending is growing and the demand is increasing. Migration, immigration and the shortage in house supply will have more people renting than buying.

Royal Institution of Chartered Surveyors -Rics- reports that the rents are rising. Figures from the National Housing and Planning Advisory Unit show that only fifty-two percent of people in their early 30s can afford to buy property in London.

The fact that the Landlord Association recorded many new numbers in the past two weeks shows that buy-to-let is doing very well.

Rental yields are rising and more people are choosing to rent instead of buy. Buy-to-let is a financially secure and safe investment for 2008.

David Newnes who is the Director of Your Move Managing, the largest letting agent in the UK explained that first time buyers who have little or no deposit are finding it almost impossible to procure high loan to value mortgages. So, they need to rent properties to live in.