Landlords across the UK could be about to experience an increase in their income once more after it was revealed that the number of mortgages afforded to buyers by banks and other lenders fell in February.
In recent months, the government's schemes such as Funding for Lending (FLS) and NewBuy have meant that far more first timers have been able to get their hands on finance to purchase their own house.
This has meant that landlord insurance customers have seen a drop in income at the end of 2012 and early in 2013. LSL Property Services recently reported that there had been a fall of 0.1 per cent in what buy-to-let owners were bringing in throughout February, with the average rental cost dropping to £731 during the month.
However, the company prophesied that the market will see another boom later in the year to boost the levels of income seen by landlords, and the shortfall in the mortgage market may well be the catalyst for the change.
The Council of Mortgage Lenders (CML) reported that the number of house-purchase loans forwarded to those looking to buy had experienced a considerable rise of £0.1 billion when compared to a year ago during February.
However, despite this annual positivity, it was also reported that the value of loans fell throughout February when put up against January. Levels now sit at £10.5 billion, compared to the £11.4 billion seen throughout January, which represented a reduction of eight per cent.
With fewer first timers moving to buy then, it will mean landlords seeing far greater volumes of people moving into the rental sector instead, pushing demand and potentially rent upwards again.
Positivity still exists in the market, the CML said, though, with Bob Pannel, the organisation's chief economist, saying: "There continue to be signs of improvement in activity and sentiment in the housing and mortgage market sector, despite headwinds from a challenging economic backdrop. With relatively strong house purchase numbers and subdued remortgage activity, the underlying position does not appear to have changed much over recent months."