A survey carried out by The Council of Mortgage Lenders (CML) has found that there were 18,00 buy-to-let loans in September totalling £2.5bn. This is a 24% increase in the number of loans over the same period last year and a 32% increase in the total value of the mortgages.
These figures show the popularity of the rental market, research has also shown that the value of property owned by landlords in the UK is set to break through the £1 trillion barrier in mid-2015 due to a boom of buy-to-let borrowers.
The rental market is improving quickly too, the number of buy-to-let loans were up 7% compared with August, property experts are confident that trends like this are set to continue, since 2001 the number of privately rented houses has expanded by nearly 2 million households as first time buyers struggle to get on the property ladder.
Re-mortgage loan numbers are also increasing, they were up 26% in August and they have increased 35% compared to September last year.
Paul Smee, director general of CML commented on the survey results, “The lending market is healthier than it was a year ago, and set to remain so. Re-mortgaging has returned as a driver of lending volume in the buy-to-let sector.”
Letting out property is becoming an increasingly popular way to make money in the UK, the current house prices mean that a lot of young professionals can’t afford to buy their own home making renting their only option.
Buy-to-let investments are also popular amongst landlords because of their high rental yields and promising return on investment, an average buy-to-let investment in the North West can give rental yields of 7.1%, according to research from the LSL Property Services buy-to-let index.
Now is the time to invest in property, whether you are looking to rent to families, young professionals or even students there is room for more privately rented properties.
Mistoria group are property investment specialists offering services such as property management, renting and surveying. For more information on what we can do to help you contact us by calling 0800 500 3015 or email us at email@example.com.