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Buy-to-let maintains buoyant mood into new year

The buy-to-let market is expected to swell further this year, tempting many existing homeowners with money to invest.

According to the Mortgage Trust, seven in ten brokers expect buy-to-let figures to increase on last year, with nearly two in five of these expecting rises of at least 25 per cent.

This compares to just 44 per cent of mortgage brokers who were optimistic about rises this time last year, with the buoyant mood attributed to rising tenant demand and product innovation.

Nicola Severn, communications manager at the Mortgage Trust, commented: "Buy-to-let brokers are extremely optimistic about 2007 and they have good reason.

"With immigration and changing social attitudes all set to continue to contribute to high levels of rental demand and product innovation likely to develop on the back of increasing lender competition."

Meanwhile, existing buy-to-let investors have been counting the gains achieved over 2006.

Paragon Mortgages reports that the average buy-to-let property rose in value by seven per cent, rewarding investors with an additional £7,736 even before rental income, averaging £10,000 for a year, is even taken into account.

With house prices forecast to rise by another five to 15 per cent this year, buy-to-let properties look set to remain an attractive investment.

Moreover, rising house prices will have a knock-on beneficial effect for landlords, with more young professional people priced out of the market, thereby fuelling demand for decent rental accommodation.

For buy-to-let investments, click here to see how much you could borrow with Lombard Direct.

02/01/2007 15:19:29

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