According to a report by Landlord Today a large number of buy-to-let market is booming as shown in this article by propertysecrets on September 16th, 2013.
The latest figures from the Council of Mortgage Lenders show strong growth in the buy-to-let market report Landlord Today.
15,200
BTL loans were advanced in July, an increase of 12% compared to June.
This represents a value of £2bn which was 11% higher than in June.
Lending
for BTL house purchase was up 7% in July compared to June, a total of
7,600 loans. The value of these loans was £900m, up 13% from June.
There
was strong growth in BTL remortgage lending which increased by 24% in
July compared to June, a value of £1.1bn. This equated to 7,200 loans in
July for BTL remortgage in total, an increase by 13.4% on June 2013.
The
figures come just a week after a survey by the Royal Institution of
Chartered Surveyors (RICS) showed that house prices are rising at their
fastest pace for almost seven years. Many pundits are predicting that
the introduction of Help to Buy could lead to another house price
bubble.
Stephen Johnson, managing director of commercial mortgages
at Shawbrook Bank, said: "The announcement of the rise in buy-to-let
lending is great news for the industry and Shawbrook is keen to support
professional investors looking to take advantage of these market
conditions.
"However, as an industry we must be careful to not
create another bubble. At the moment lending conditions are very good
but these are unusual times and the UK needs to create a sustainable
market, not one lurching from peak to trough. Those looking to buy
property need to ensure they look at the long term - investors need a
portfolio that can still work in a more normalised interest rate
environment. Sensible gearing will maximize returns, over-gearing now
could potentially put at risk investors' hard-earned equity."
Article Source: http://www.propertysecrets.net/article/buytolet_mortgage_market_booming/3115.html
No comments:
Post a Comment