Buy To Let Mortgages

Future Popularity of Buy to Let

Buy to let is something that really is here to stay. The Council of Mortgage Lenders has revealed that the current total value of buy to let borrowing, across the UK, is approximately £84 billion and this figure is set to rise. Research has revealed that 39 percent of individuals rely on property to bolster their savings in later life. At present, only 20 percent see this added income coming from their own property. This suggests that although individuals recognise that property holds the key to future wealth, it will not necessarily come from their own family home.

Where are the Growth Areas
Private rental is still seen as the fastest growing area, in the context of the buy to let market. This is driven by an increasing number of students away at university, more single adult families and young professionals delaying the purchase of their first property.

Finding a Buy to Let Hotspot
Aside from the type of property, there are choices that need to be made in relation to the best geographical places in which to invest. From a tenant’s point of view, one of the best ways to spot a potential hotspot is to look at areas that are undergoing improvements in transport infrastructure. New roads, railway lines and tube extensions are all a good indication of an up and coming area. Large events such as becoming a culture capital or hosting the Olympics in East London are all obvious as indicators of investment hotspots. Buy to let investors should, therefore, stay abreast of developments, if they want to cash in before the masses catch on!

Follow government movements, carefully. Often regeneration plans are in place for certain locations and these should be monitored carefully, as they give a good indication of where prices are likely to rise, in the near future. In some cases, grants for the redevelopment properties within this area are available, which can make renovation even more cost effective.

Work within a 10 minute radius. Tenants are generally looking for good facilities within a very close radius. This should be seen as within a 10 minute walk or drive of the property. For example, a family will be particularly interested in properties that are within 10 minutes of a good school and suitable parks and entertainment.

Summary
The buy to let market is as buoyant as ever and is set to continue to grow over the coming years;
private rental still makes up the largest part of the buy to let market; and
budding property investors should monitor developments in infrastructure, regeneration and events, in order to determine the next property hotspot.