UK letting agents are predicting a buy to let boom over the next twelve months, which is good news for landlords. Market data indicates that the property market is finally beginning to pick up after it went into meltdown six years ago. House prices are rising and homes are starting to sell once again. This means than many accidental landlords (those who were forced to let out their properties when they failed to sell) will be looking to sell up. Mortgage lending restrictions are also easing as lenders are beginning to relax their terms. In fact, figures recently published indicate that buy to let mortgage lending is up around 25%.
Buy to Let Demand Rises
Of course this is not necessarily a good thing for tenants. If the number of available properties in the buy to let sector significantly decreases, rent prices will rise because of an increase in demand. This is great for landlords, but not so great for tenants trying to find a suitable home in popular areas. And the more demand for rental property there is, the more competition there will be, which will make it hard for tenants claiming welfare because landlords will be able to pick and choose who they take on.
Expand Your Buy to Let Portfolio
The next twelve months could be an ideal time to expand your property portfolio, but before you get too excited, remember to choose your tenants wisely as the wrong tenant could end up costing you money in the long run.
