New research from Nottingham Building Society has indicated that 19% of buy-to-let landlords plan to purchase more properties to add to their existing portfolio.
Experts are predicting a further boom for the market, which is already thought to be worth in excess of £188.3bn.
Future growth
Further data from the report shows that an extra 4% of homeowners plan to become buy-to-let landlords for the first time in the coming year. Almost a third of these are believed to be over the age of 55.
The Nottingham’s research in conjunction with mortgage brokers shows that 70% believe the introduction of Pensions Freedoms earlier this year will lead to extended demand for buy-to-let mortgages.
26% of brokers suggest that over the next 12 months, demand for buy-to-let mortgages will rise sharply, with 41% predicting a slight increase. Just 2% think demand for these products will dip
Demand
Ian Gibbons, Nottingham Mortgage Services Senior Mortgage Broking Manager, commented that, ‘the nations love affair with property is as strong as ever and this is reflected in the growing demand for buy to let properties. Our research suggests that this is also being fuelled by the recent changes to how people can use their pension money. Clearly some want to use this money to buy property to rent out.’[1]
‘When considering a buy-to-let mortgage it is important to seek professional Whole of Market (WOM) advice as some lenders may offer products with higher LTVs than the average, lower application fees, some lenders don’t restrict lending based on the number of properties in your existing portfolio and some don’t restrict first time buyer or first time landlord investors,’ Gibbons continued.[1]
Concluding, Mr Gibbons said that,’ a professional WOM adviser will be able to navigate the extensive range of lenders and products to find the right solution for you, based on your requirements.’[1]
[1] http://www.propertyreporter.co.uk/landlords/btl-boom-for-first-time-landlords.html#.VffUKSPwnFY.twitter