Considering getting in the property rental market? Then, now could be a good time to get in to the buy to let arena as rental prices continue to increase. Reports have shown that those who decide to invest in property are on course to reap a good return on investment over the next ten years.
With demand increasing for buy to let mortgages, this has served to further fuel competition between mortgage lenders and as a result interest rates have fallen. Coupled with a rise in rental prices and an improvement in the house price sector, now could be a good time to invest.
The Royal Institution of Chartered Surveyors have released figures that show an increase of 4.3% in rental prices over the past twelve months and this figure could be pushed higher due to a shortfall in good quality rental properties, as well as the harsh climate of residential mortgages where people are experiencing difficulties in getting funding to buy their own property.
RICS global residential director, Peter Bolton King, says:
"While tenant interest is still riding high, what remains to be seen is whether many are willing to meet the increasing rents being demanded by landlords. However, it is clear we have seen rents grow steadily right across the UK for some time. This is partly down to the problem of the scarcity of mortgage finance and the large deposits required by lenders."
A further report by the Council of Mortgage Lenders stated there was good growth in the rental market with an increase in the lending of buy to let mortgages by almost a fifth over the past twelve months. BTL mortgage lenders advanced a total of 33,200 loans worth £3.9bn in the three months ending June 2012.