Market promises healthy returns for BTL investors
New research has discovered that buy to let investors are one of the main contributors to the housing markets current stability.
A recent study conducted by one of the UK’s largest secured loan providers has found that rising house prices are forcing more and more first time buyers to rent their homes. This trend is then allowing landlords to increase rental prices due to increased demand for the their properties, which in turn is better allowing BTL investors to cope with rising mortgage costs and thus continue to expand their portfolios.
Statistics show that the rental market is increasing in value by around 13% each year, whereas housing market growth had increased by only 9% in the last year. One expert suggested that unless their was a dramatic change in the housing market (with regards to value), the rental market would only continue to grow with BTL investors making even bigger returns over the coming months.
A separate survey discovered that more than 30% of owner-occupiers are struggling to cope with their mortgage commitments, and feared a personal financial collapse was an inevitability should interest rates continue to rise. Analysts predict that the 5th rate rise for the year is just around the corner.
