My attention this week settles on the buy-to-let sector. There are apparently an increasing number of new landlords applying for mortgages with a view to investing in this particular way.
Buy-to-let lender Paragon reports a rise of 5% (from 22% to 27%) in the second quarter of the year; this is the highest level seen since the financial crisis struck. Forty-three per cent of financial intermediaries take the view that the demand for buy-to-let finance was either strong or very strong in the third quarter. This has almost doubled since the comparable period last year when it was 22%.
Almost two-thirds of intermediaries claim to have seen an improvement in the availability of buy-to-let finance over the last three months. From the other side of the property fence, 91% of landlords are confident that tenant demand remains strong.
John Heron, managing director, Paragon Mortgages, thinks that new landlords are: 'drawn by the potential for attractive yields relative to returns on cash and other investments and long-term capital growth. They have been an important source of growth at a time when more established landlords with larger portfolios have found themselves constrained by limited equity.'
More good news for established landlords comes from tenancy referencing firm Legal 4 Landlords . One of the most important tasks for a landlord is to check the references of potential tenants. This is not something that can be left to chance or indeed word of mouth. A survey by the firm claims that more tenants are successfully passing such checks this year compared with last (74% versus 68%). Another encouraging sign is that the number of applications that need to be backed by a guarantor has also gone down over the same period (from 25% to 20%).
The firm attributes the improved pass rate to the sheer growth in demand for rented properties, enabling landlords and agents to be more selective from the outset. Spokesman Sim Sekhon says: 'This development is great news for landlords and agents who can cherry-pick the best tenants'.
Buy-to-let lender Paragon reports a rise of 5% (from 22% to 27%) in the second quarter of the year; this is the highest level seen since the financial crisis struck. Forty-three per cent of financial intermediaries take the view that the demand for buy-to-let finance was either strong or very strong in the third quarter. This has almost doubled since the comparable period last year when it was 22%.
Almost two-thirds of intermediaries claim to have seen an improvement in the availability of buy-to-let finance over the last three months. From the other side of the property fence, 91% of landlords are confident that tenant demand remains strong.
John Heron, managing director, Paragon Mortgages, thinks that new landlords are: 'drawn by the potential for attractive yields relative to returns on cash and other investments and long-term capital growth. They have been an important source of growth at a time when more established landlords with larger portfolios have found themselves constrained by limited equity.'
More good news for established landlords comes from tenancy referencing firm Legal 4 Landlords . One of the most important tasks for a landlord is to check the references of potential tenants. This is not something that can be left to chance or indeed word of mouth. A survey by the firm claims that more tenants are successfully passing such checks this year compared with last (74% versus 68%). Another encouraging sign is that the number of applications that need to be backed by a guarantor has also gone down over the same period (from 25% to 20%).
The firm attributes the improved pass rate to the sheer growth in demand for rented properties, enabling landlords and agents to be more selective from the outset. Spokesman Sim Sekhon says: 'This development is great news for landlords and agents who can cherry-pick the best tenants'.
gibbs-gillespie
Tel 08002425255 
renttoownproperties@consultant.com
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