Buy to Let.

The Buy to Let mortgage market saw steady growth last year. More lenders joined the sector bringing greater choice of products and more competitive rates. With little sign of a shift towards more affordable housing for first time buyers and a chronic under supply of new homes, the private rental market and the need for Buy to Let products, remains strong.

There's been alot of debate about the rental market recently, whether renting has become a viable solution for many or if its the end of the rental boom. Watch Ben Thompson as he comments in the latest webcast for Lovemoney.com on this issue.

SURGE IN LANDLORD BUYING ACTIVITY

Research by Buy to Let specialist Paragon Mortgages revealed that property acquisition activity remained strong in Q1 of 2012. During the last three months landlords increased their portfolio size by 1.8 properties. The average portfolio size in Q1 2012 was 10.8 properties, accommodating 1.3 tenants per property.

Landlords are very optimistic for 2012, with 35% of those who took part in the survey expecting to add to their portfolio this year. The most popular property of choice for investment are terraced houses (64%), followed by flats (57%) and semi-detached houses (46%).

The tenant profile also remains unchanged, the young singles at 53%, followed by young couples at 51% and families with children at 51%. Landlords remain very positive and are satisfied with their current tenancies.

NORTH BEATS SOUTH IN YIELD TABLE

Research conducted by Paragon Mortgages, has shown that landlords in the North West are generating a yield of 6.6% - an increase from 5.9% in Q4 2011. This makes them top of Q1 rental yield table. The North East achieved an average of 6.5%, in third place was the South West with a yield of 6.4% and the East of England with 6.3%.
The overall average yield achieved by landlords in Q1 was 6.2%, an increase on Q4 where the average was 5.9%. This is a good sign for landlords as tenant demand continues to grow.

A POSITIVE START TO 2012

Research by specialist Buy to Let lender Paragon has reported a positive start to 2012 for landlords in the Private Rented Sector (PRS). A fifth of landlords who took part in the survey are planning to purchase buy-to-let property in the second quarter. With almost half of those planning to invest (46%) are planning to purchase terraced houses and 31% expect to buy flats of maisonettes.

Landlords’ views on tenant demand remain unchanged with 44% saying tenant demand was growing, and 53% saying they expect demand to increase over the next 12 months.

VOID PERIODS REMAIN LOW

Void periods decreased further from Q4 2011, dropping from 2.9 weeks to 2.6 weeks. Smaller-scale landlords saw a slight decrease from 2.7 weeks in Q4 to 2.6 weeks in Q1. Professional landlords saw a bigger decrease dropping to 2.6 weeks in Q1, from 3 weeks in Q4. So the year ahead for landlords look very optimistic, the appetite for quality, private rented housing is still strong.

Only time will tell. At Mortgage Club we have a host of information to help you understand and operate in this sector, whether you're new to Buy to Let or actively involved – let us help you.

Help and support

Do you understand the market and the products?

You'll find the latest lender documents on the right-hand of this page.  Currently available are sales aids for your use and for you to use with your customers, papers on the market and it's outlook, Buy to Let guides and  our own guide to use with landlords. We'd also recommend you visit BM Solutions 'Buy to Let experts' microsite. It's designed exclusively for Buy to Let with expert hints and tips, calculators. brochures and leaflets to help educate you and your clients.

Do you know which lenders operate in the market?

See our lender pages; The Mortgage Works, Paragon, Platform, Mortgage trust, Woolwich, Leeds, BM Solutions, Aldermore & Abbey. 

Do you need help getting started?

Your Legal & General Relationship manager is willing to help you. They may also be able to arrange for some training or for a lender to visit you

Do you advise on Buy to Let?

See our latest buy to let mortgage deals. Visit our exclusives page and filter your search using Buy to Let. 

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