More good news for Landlords

Although the Financial Press are doing their best to find a doom and gloom stories about falling house prices and Mortgage lenders refusing to part with our cash, if you wade through the negativity there is actually some positive news stories as well. For example My introducers article that starts with House prices down last month actually reveals that from last year in most areas house prices are up. It also goes on to reveal that compared to the House Price crash in the 90’s this Drop has been minor.

I also found this article below from Mortgage introducer following on from our Buy to Let Blog post from Last week. I guess it’s not good news if your renting but as none of our clients are renting properties and a good percentage are landlords this is good news for us.

Over to the Mortgage introducers article.

The surveyor trade body said rents were pushed up over the three months to October by rising numbers of people looking to rent while the supply of new property onto the rental market dwindled.

RICS put this down to the difficulty people were having securing mortgage finance and the high deposits required by lenders.

Its member surveyors said the rental market remains buoyant, with properties being let very quickly and landlords experiencing very few voids.

The research showed houses are slightly more popular than flats with 33% more surveyors reporting a rise in demand than a fall, the fastest increase in demand since 2008.

New landlord instructions – a good indication of supply to the market – slipped further, marking five consecutive quarters of falling instructions. And respondents reported that difficulty in securing Buy-to-let mortgages is holding back many would-be landlords, and a fresh supply of property entering the market.

Meanwhile, renewed falls in the sales market saw fewer existing landlords choosing to sell their property at the end of a tenancy agreement. The proportion intending to do so declined from 4.1% in the three months to July to 2.5%, well below the survey average of 4.4%.

Across the UK, London saw the biggest increase in rental prices, with a net balance of +86 – the highest number in the series history. A turnaround occurred in the North, where the net balance improved from -3 to +23 but all regions are now recording positive readings.

Looking ahead, the outlook for rents over the next three months remains very firm. 34% more surveyors expect rents to rise than fall, with the expectation that rents for houses will increase at a slightly faster rate than for flats.

RICS spokesman, Jeremy Leaf, said: “The lettings sector has become increasingly strong over the past nine months, in contrast to the housing market which continues to slow. Many have turned to the rental market because they fear further price reductions in the housing market, or because they cannot obtain the necessary finance to buy.

“As a result, rents continue to rise with supply failing to keep up with demand. However, there are increasing indications that more landlords are recognising these benefits and looking to add to their portfolios – especially as there has been a rise in the number of providers willing to offer investment mortgages in recent months.”

As I said its all good news for landlords – Cheers Rob AR

Rob AR can be contacted on 01202 577718 0r complete the enquiry form.