Buy-To-Let is Booming in the UK

Buy-To-Let property is Booming in the UK

The Council of Mortgage Lenders (CML), have revealed that the UK is in the grip of a Buy-To-Let boom that shows no signs of stopping, as property investors snap up UK property worth £160 Billion (GBP).

The CML state that there are a record 1.4 Million Landlord loans, valued at almost £160 Billion (GBP), currently invested into UK Private Rented Sector (PRS), residential properties.

It appears that property investors have been keen to cash in on the soaring PRS rental demand and have been snapping up large quantities of residential properties.

The rental demand exists because many people still feel that they can’t afford to buy a home of their own and those who want to buy, are forced to rent whilst saving huge cash amounts required for the deposit for a property purchase.

With income from savings wiped out by low interest rates, mortgage repayments have become cheaper and landlord numbers have increased.

With Private Rented Sector (PRS), rents close to all-time highs across the country, there has never been a better time to get into Buy-To-Let!

Owning a residential property that is suitable for buy-to-let (BTL), that produces a regular rental income can be a real money-spinner for both amateur and professional landlords.

In London the average rent is approximately £1000 pcm, however in the rest of the UK, the average rent is only £711 per month.

According to the CML, in 2001, when the UK Buy-To-Let market was still in its infancy, landlords had obtained 185,000 loans to invest in rental properties.

Today, landlords have taken out 1.39 Million loans, worth about £160 Billion (GBP), to spend on their property empires, with an estimated 84,000 homes bought using specialist Buy-To-Let mortgages last year alone.

Critics have claimed that the UK buy-to-let market has forced property prices up to levels which many first-time buyers cannot afford.

Although buy-to-let loan numbers have ballooned, the number of mortgages to first-time buyers has taken a dramatic nose-dive.

Last year, according to lettings agent Countrywide, about 275,000 new tenants registered their interest in private rental accommodation – a 24 per cent increase on the previous year.

It said that a typical tenant is a couple under the age of 35, although the number of families is rising.

During the past ten years, the number of young people getting on the property ladder has collapsed from about 500,000 each year to just 200,000 and the lack of available finance, high deposits and employment stability being blamed for the fall in applicants .

Read the full Daily Mail article here

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