There is never a shortage of people giving opinions on the outlook for the property market. Serious property investors might take a look at the latest report from Datamonitor which covers the prospects for the buy to let sector. It points out various threats and weaknesses in the rental sector, on the negative side the possibility of FSA regulation and the lack of mortgage funding. The Financial Services Authority is proposing to regulate buy to let mortgages because it sees these as higher risk than loans to owner occupiers. Many feel this will add unnecessary red tape to the process of building up a portfolio of rental houses. Lack of mortgage funding is certainly an issue; the number of specialist loan products available has shrunk dramatically since before the credit crunch.
On the plus side Datamonitor point to growing demand as the population increases and more people cannot afford to buy a house or need the flexibility of a rental.
Does anyone have any experience of the market since the election?
What are your thoughts on more regulation?
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