Buy-to-let market improving, research reveals

Research from price comparison website Moneyfacts has found that the buy-to-let market is improving within the UK, with a year-on-year increase in mortgage deals noted.

According to Telegraph.co.uk, the website measured the volume of buy-to-let mortgage deals on offer in Britain. Whilst in February 2011, the figure stood at 386 and in 2010, it was 243, this month it stands at 486. In fact, this is the higher number noted since the recession began.

A representative of moneyfacts.co.uk, Louise Holmes, shared her thoughts on the results. She told Moneyfacts.co.uk: "During the peak of the credit crisis, the number of buy-to-let deals shrank considerably as lenders saw it as a high risk area of the market.

"Many aspiring homeowners have had their property dreams dashed due to strict lending criteria and large deposits, meaning the only option left is to rent," Holmes added, before confirming that the results should be received warmly by for property investors and landlords.

Rates offered on mortgages are falling too, bringing even greater news for those hoping to start a portfolio filled with properties for rent.

The average rate investors can pick up at present is 4.79 per cent, compared to the 5.00 per cent seen one year ago and the 5.31 per cent recorded back in 2010.

Posted 02-02-2012
Author: Deborah Bates