Buy-to-let lending grew in July, according to the new monthly index from the Council of Mortgage Lenders, with the total buy-to-let loans advanced increased to 15,200, up 12 per cent compared to June.
Bien Media client, George Spencer, CEO of property and technology company Rentify, commented: ‘Landlord optimism is at its highest level in several years, thanks to strong rental yields, low mortgage rates and the general recovery in the housing market. Both experienced and novice investors alike are taking the plunge and expanding portfolios or getting into buy-to-let for the first time, while there is strong growth in buy-to-let remortgaging as existing landlords take advantage of ultra low rates. This also demonstrates that many are investing for the long term, which is good news for the sector.
‘London remains incredibly popular for landlords, with investors increasingly choosing less well-known areas on the edge of more established ones in order to generate better returns.
‘Accidental landlords, while still making up the majority of landlords, are increasingly taking advantage of improved market conditions and selling up. However, this presents a good opportunity for those landlords in a position to expand their portfolios.
‘Because the recovery is coming from such a low base, we expect the buy-to-let market to continue to grow at an impressive rate in coming months. There has also been a big rise in the number of estate agent jobs in the past year, with many of these working in lettings. This clearly illustrates the extent of the housing boom but landlords and tenants alike should tread carefully and make sure any lettings agent they use is regulated. Even better, join one of the landlords doing it themselves: we are adding rental properties to our website at the rate of more than 400 a week and now have 140,000 landlords and tenants registered with us as both sides look for alternatives to traditional high-street letting agents.’