UK Buy to Let Promising within the current Housing Market
The latest CHL Mortgage Landlord Survey confirms what many landlords have been leaning toward since the middle of the summer. The outlook for the UK buy to let market is positive and looking more so every month. Three out of four responders to the survey have confident feelings regarding the future of the rental market, which is slightly higher than summer figures indicate. One year ago the figure was closer to two of four.
Although, those seeking entrance into the market are still being road-blocked by the combination of a lack of funding and the requirement of high deposits. Almost 50% of the landlords responding claim current demand for buy to lets is better than six months ago.
Bob Young, Director at CHL Mortgages, commented on the current market, saying: "The research reveals that buy-to-let landlords are increasingly bullish about the state of the sector and their place in it.
"More landlords are looking to acquire new properties if they can square the circle of finding available finance and meeting the higher deposits that are required by lenders.
"This positivity is clearly fuelled by a growing demand for private rental properties from tenants and a significant improvement in the rental yields available.
“Rental income levels are improving as witnessed by the large number (88%) who now say they can cover all related outgoings with the rental payment. This figure has never been higher since we started the Landlord Survey.”
Monthly rental fees continue to increase across the UK, with an emphasis on the Capital City.