Landlords
Buying Property
Lending to landlords increased by 19%
The CML has reported a 19% increase in the amount
of lending by landlords in purchasing (and insuring!) buy to
let property. This is reported in today's telegraph
Whether this increase is beneficial is open to
question. House prices, other than in London, have been falling
consistently in the last few years, although the Halifax have
recently reported a slight hardening in costs.
So it may be that the market is turning and
landlords wishing to expand their portfolios should consider
whether the bottom has been reached or it is just a statistical
quirk.
There are well-known additional pressures on
house prices, the population of the UK is increasing and housing
stock is not being expanded as many developers are sitting on land
banks waiting for indications that the market is going upwards.
This report, incidentally confirms the news
previously that there were indications that the market was
beginning to turn round.
Despite claims that landlords were buying all the
property, statistics show that only one in seven mortgages were
given to buy to let customers, with standard mortgages being by far
the most common.
Landlords should be aware that buy to let
mortgages may become regulated by the EU in the future - this will
make it harder to obtain these mortgages as the costs are passed on
to consumers, but who will benefit from the increased probity of
lenders and advisers.
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