Could 2015 Be Another Boom Year For Buy To Let Properties?

Thursday, February 26, 2015

Is 2015 The Year To Get Into Buy To Let Property Ownership?

Is 2015 The Year To Get Into Buy To Let Property Ownership?

Is 2015 The Year To Get Into Buy To Let Property Ownership?

There are a number of encouraging reports circulating in the media at the moment suggesting that 2015 could be another boom year for landlords, letting agents and the buy to let property market in general.

The changes announced by the Government to the pension rules are due to come into effect in April 2015, allowing individuals to control their own pension pots, with the most important changes concerning lump sum withdrawal.

Many potential retirees’s and would be property investors are already making buy to let mortgage enquiries and other types of traditional investors are also asking about lump sum transactions into alternative investment vehicles, including property.

According to a recent survey conducted by a property finance company:

  • 82% of buy to let mortgage brokers reckon that the UK Buy To Let property market will continue to grow strongly during the course of the year, despite the impending general election and party political campaign hype.
  • 80% of mortgage brokers surveyed felt that buy-to-let mortgage demand will show little sign of abating during 2015, with 75% of respondents also predicting that average UK property prices will finish the year higher than they were at the end of last year, as the UK’s economy continues to improve.The survey, of 200 UK-based buy to let mortgage specialists, showed that most believe the UK property market will continue to gain strength despite the introduction of tougher mortgage lending criteria introduced in April last year under the Mortgage Market Review.
  • 53% of buy to let mortgage brokers surveyed believed that the Mortgage Market Review will only have an adverse effect on UK property finance for the short to medium-term.
  • 70% of brokers said they were more comfortable arranging short- and medium-term finance for their clients than they were 12 months ago.

It seems that the general attitude towards alternative property finances have improved sharply during the last 12 months, especially with the emergence of crowd funding as an alternative method of raising capital.

Sim Sekhon - Finance 4 Landlords

Sim Sekhon – Finance 4 Landlords

Spokesman for Finance 4 Landlords, Sim Sekhon stated: “Although the tougher mortgage lending criteria makes obtaining buy to let mortgage finance slightly more difficult due to the inclusion of affordability calculations, there is still a great deal of confidence in the UK property market right now. Brokers, economists, speculators and commentators are openly backing the buy-to-let property market to outperform the residential property market in 2015, but many industry experts also expect that the residential market will also continue to improve during the course of the year. With this in mind, there has never been a better time to invest in property”

The findings of the survey are also boosted by the publication of the latest mortgage lending figures by the UK’s Council of Mortgage Lenders, (CML), for December 2014 showing that there were 17,300 buy to let mortgage advances made during the month, meaning that gross mortgage lending figures were 18% up on December 2013.

Find out more about Buy To Let Mortgages from Finance 4 Landlords

This was written by Mike Clarke. Posted on at 11:30 am. Filed under Buy To Let. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.