Buy-to-let market good for investment

18/05/2007

It has been confirmed that buy-to-let investors are happy with the way the buy-to-let sector is going and any more interest rate rises will not change potential investors mind to investing in property.

There are forecasts from Mintel that the number of buy-to-let investors will double over the next four years, and that buy-to-let mortgages will keep on increasing from 163; 38bn.

People think house prices are going to go down in value, this is exaggerated. There are many rumours and nothing is 100% confirmed. According to Martin Weale, director of the National Institute of Economic and Social Research he clearly states that;

“they will, but multiple buy-to-let holdings create potential for instability. Anyone with a large mortgage, especially for buy-to-let, is taking a big risk.”

The house price inflation over the whole of UK is down from 11.8 per cent to 10.5 per cent and is said to slow down 3 or 4 per cent by the end of 2008. It has been confirmed that in March mortgage approval figures were 12 per cent lower than 2006 figures.

Professor Michael Ball of the University of Reading Business School said: “Many buy-to-let investors have a lot of their own equity in their properties and are pretty financially secure. In any event, most are confident that prices will slow down rather than slump. There is very strong demand and tight supply.”

Free Mortgage Enquiry