span that's a trend that is likely to
class="cap">T hanks continue.
to the credit crunch and
It's believed to be caused by
the general lack of confidence in people delaying their property
the property market, it's an search for a home to buy, because
interesting time to sell or buy a of the way the market is at the
house at the moment. moment. In particular first time
It's certainly a buyer's market. buyers without savings are
And while it's only house price finding it hard to get a good
growth that's slowing, rather mortgage deal. So landlords who
than prices themselves, it's not can leverage a sizeable deposit
clear whether there are “bargain” have an opportunity to buy and
purchases to be had.
rent out.
So if you're thinking of
Figures from the Council of
becoming a landlord, is this a Mortgage Lenders seem to confirm
good time to buy rental property? these findings. Its figures show
We take a look at recent stories buy-to-let lending came to more
to see what the general consensus than £24 billion in the second
is.
half of 2007. That's up from £21
The first story from the UK's billion in the first half of the
largest letting agent Your Move year, which itself was a billion
suggests the answer is yes. It up on figures from the second
says there was a 21 per cent half of 2006.
increase in the number of new
More good news for people with
lets starting in January and rental property from the
February this year.
Association of Residential
Its research has shown that Lending Agents. Its research
the credit crunch has caused a shows average rents in the UK
distinct increase in demand for have continued to increase
rental property from tenants. And dramatically over the last three
months. it gives include buying a number
Between December and February of homes off-plan from a property
the average rent for a UK house developer, before selling them
went up by four per cent, and 2% off one by one to buyers. Risky
for a flat.
but with the potential for huge
The association represents profits.
professional letting agents, and
Another strategy it suggests
says its records show that when is to snap up old commercial
property prices slow or fall, property and convert it into
demand for rental property shoots residential homes. Or to gang up
up. The proportion of its members with other investors and form a
reporting they have more tenants property fund to buy valuable
than properties is at its third land for construction.
highest level since records began
It all looks good, but we'll
six years ago.
give the last word to the Royal
More good news, this time from Institution of Chartered
Which? magazine. The consumer Surveyors (RICS). Earlier this
watchdog says it's still possible month it revealed that demand for
to make a profit in the UK residential rental property
property market, despite the continued to grow during the
decline in price growth.
fourth quarter of 2007.
It has published its latest
There is a caveat to that –
Property Investor's Handbook, the rate of growth in the market
which says that investors with fell for the second consecutive
the guts to take risks will still quarter and is now below the long
be rewarded. Which? actually run average for the sector. More
recommends that instead of than 82% of all properties were
getting into rental property, you rented to individuals.
look at less conventional
So, if you choose to become a
property investments. Suggestions landlord, this does seem to be a
good time. Good luck!
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Article Tags: good, property, rental
