Buy to Let Mortgages on the increase.

According to the latest Buy to Let Index from LSL Property Services, which owns a lettings agent network including national chains Your Move and Reeds Rains as well as several Mortgage Broker Networks.

In October, UK rents rose by 0.4% to £691 per month – surpassing September’s record high of £689. The annual inflation in the average UK rent has grown to 4.5%. If rent inflation continues at the same pace, the average rent will hit £722 pcm this time next year.

The average yield remained stable at 4.9% in October, as steady rent rises were matched by modest growth in the prices of rental properties.

David Brown, commercial director of LSL, commented: “Rents have been creeping upwards, month in, month out for the last year, and now stand just a few pounds shy of £700 per month. The recent increases are likely to steady slightly in the run up to Christmas – traditionally a slower time for the market. But a strong underlying growth will remain, as the key market dynamics are geared towards further rises.

The Mortgage Finder has found via its Brokers at Rest Assured Mortgages that many new landlords have either come back or entered the market  as returns on savings are very low so purchasing a property as an investment has become far more attractive.

Principal Rob Ashley-Roche commented that this year has seen the highest percentage of BTL mortgages sold against standard residential mortgages since starting Rest Assured Mortgages in 2006. He also commented that most of his landlords put down a deposit of 25-30% of the purchase price and find that the rental income is at least 125% of the mortgage payment so offering a good return.

If you’re interested in more information on BTL mortgages and wish to speak to a Mortgage Advisor from Rest Assured Mortgages they can be contacted on 0845 500 3332.

Posted in: Latest news on November 19th by ukmortgageman

1 Comment

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