The latest statistics show that despite the nationalisation of one of the industries largest buy to let lenders, Bradford & Bingley, there was a significant increase in the number of existing and new landlords taking out buy-to-let mortgages in September 2008.
The figures provided by the Spicerhaart Financial Services monthly mortgage survey showed a 58 per cent increase in borrowers opting for a buy to let mortgage in September, this is the biggest rise in over 12 months.
The rise in buy to let borrowing indicated that buy to let property investors remain confident about the prospects of buy to let property investment despite economic turbulence and the withdrawal by some lenders of buy to let mortgages.
Steve Cox, operations director of Spicerhaart Financial Services, said: “There has been a lot of speculation about buy to let running its course and with the demise of Britain’s biggest buy to let borrower, Bradford & Bingley, these views were further exacerbated. However, it is clear that borrowers do not share these views, with experienced landlords seeing this as a prime opportunity to buy properties at a reduced price.
Since July, we have seen a steady increase in the number of new buy to let mortgages being taken out as investors look to take advantage of lower property prices, the continued demand for rented properties and increasing income yields. Buy to let continues to offer good opportunities for investors and the current state of the money markets has resulted in many people believing that properties could well be a safer option than shares or even saving deposits. With house prices already falling by 15 per cent, now is an ideal time to buy an investment property – although investors should be viewing these as long term investments. Investors who buy now will be in a good position once the market improves and demand returns.”
Mr Cox went on to say that despite 85 per cent of buy to let products being removed from the many markets in the past year, that there were still plenty of buy to let mortgage products available to buy to let property investors who hold good-sized deposits, and were looking to buy in established markets.
This shows us that buy to let property investment remains a solid investment for landlords and is likely to remain a strong market in these uncertain times. Most property management professionals would urge landlords and letting agents to make sure they cover themselves with property management insurance. Products that are of note in the property management insurance field include, rent guarantee, rent insurance, landlords buildings insurance, landlords contents insurance and combined buildings and contents insurance for landlords. Most reputable property management insurance providers will be able to provide landlords and letting agents with these products and services but if the landlord or letting agent is seeking a provider of property management insurance then they should turn to the one of the nations leading providers of property management insurance, http://www.letsafe.net/
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