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Trends In The Rental And Mortgage Markets For Early 2013

February 20th 2013
By: Acquarone
Trends In The Rental And Mortgage Markets For Early 2013

Latest industry research by LSL Property Services has suggested that the private rental sector is ‘coiled for a spring bounce’ with good returns expected for the rest of 2013. Their latest buy to let index has revealed a surge of tenant activity in the early part of 2013, which without a sudden supply of accommodation will likely lead to continuing increases in rents throughout this year. These findings are reinforced by the market data pooled together by the Association of Residential Lettings Agents (ARLA) that indicates an upward trend in landlord investment over the past 12 months. It was found that the average number of buy-to-let (BTL) properties owned by private landlords had increased from 7 to 8 and that the likelihood to purchase a new property had risen from 24% to 29%. These findings are complimented by the falling cost of finance with fixed buy to let mortgage rates at their lowest level in six years. In light of this we have asked our team of in house financial advisors to put together some of the key changes and trends in the mortgage market for the early part of 2013.

• Lenders have recently been reducing many BTL mortgage rates
• Lenders arrangement fees have also been slightly reduced
• Some lenders will now accept a deposit as little as 15%
• Lenders are offering more BTL products than they previously did
• Interest only is still accepted on BTL mortgages
• Some lenders now do not have any minimum income requirements for a BTL mortgage
• The application process is usually more straight forward that a residential mortgage & usually less documentation is required
• At the moment all the changes in the BTL market are positive

ARLA have concluded that despite wider economic uncertainty the private rental sector continues to be providing attractive investment prospects for landlords underpinned by increasing availability of finance and consumer demand.

If you would like to discuss your plans for 2013 or have a question about any of the points raised in this article why not book a meeting with one of our investment specialists or financial advisors by calling 0844 8111090.