King of The Housing Market

The number of buy to let landlords investing in the UK property market looks set to rocket in the future, a new report by Mintel suggests.

According to Mintel's research, one million homeowners say they are planning to invest in the buy to let market within the next three years.

If this does happen then reports suggest that the current number of landlords in the UK rental market will double by 2010, with further expansion predicted by 2011. With the latest EU reports detailing the volume of the UK population growing massively (see previous blog) we can clearly see that the supply will be needed, especially if the current squeeze on mortgage application acceptances is anything to go by.

Paul Davies, MIntel senior financial analyst commented:

"It is clear that these days, buy to let is no longer the exclusive domain of professional portfolio landlords. Increasingly property owners are seeing the benefits of investing in bricks and mortar and often regard the second homes market as a good alternative means of saving for retirement. As long as these trends continue, future growth in this market should be guaranteed."

It is easy to look at the current economic climate and see why the buy to let market is booming right now. Various factors and news we are bombarded with on a daily basis through the media keep reiterating that financial institutions (some of the largest in the world) are facing challenging times themselves. With recent massive mergers and bail outs on a global canvas the economic down turn shows no sign of abating. This means simply that the money made available to prospective home buyers does not look like it will be available on anywhere near the same scale again. Now super banks will take centre stage when we eventually see the economic climate turn once again as it seems to do every 20 years or so.

The buy to let market will continue to flourish for many reasons, tenants inability to obtain a mortgage, their lack of confidence in bricks and mortar as an investment, the supply of increased rental housing as landlords who have kept money back continue to grow their portfolios, the explosion predicted in the UK population and many many more micro economic factors that blend with the overall chaos to bring us to a point where we see the landlord becoming king of the housing market.

Whatever the future holds for landlords and letting agents LetSafe will be making sure they watch and deliver on the needs of this rapidly changing market.

http://www.letsafe.net/ visit us today