The Council of Mortgage Lenders reported on the 12th November that buy to let lending rose by 10% in the three months to September compared to the previous three months. Buy to let loans to landlords rose in number from 21,600 to 23,700 between those periods. A spokesman for the CML said “At this stage the recovery is modest but the figures show that buy-to-let is here to stay.”
The CML believe that transactions will reach 810,000 in 2009 and 850,000 in 2010.
One firm of estate agents and surveyors reckons that landlords investing in property a year ago would be sitting on a 2.4% return taking in to account the rental income and a slight drop in property prices. One thing is for sure, cash on instant access accounts at the bank is earning very little so it is no surprise that people are tempted to become landlords. However, there continues to be uncertainty about the future for house prices and it is still difficult to secure finance for property projects.
What is your view - is it a good time to become a landlord?
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