Ratings agency scores UK buy to let sector strongly
The UK’s buy to let mortgage sector has seen performance continue to improve in 2012 says the latest report from ratings agency Moody’s.
Low interest rates helping buy to let mortgage affordability
The report states that in the three months leading up to May property repossessions had remained stable at 0.1%.
The report also stated that it fully expected the overall performance of the buy to let market to remain constant as interest rates are low, and unemployment is expected to rise slightly compared to 2011 by 0.7% to 8.7%.
The continued uncertanty in the economy has resulted in more interest for bad credit & previously declined mortgage options for buy to let.
2012 property price rises expected to be stable
Property prices are also expected to remain stable within a band of 3%.
“Performance in this sector has been stable for the past year mainly because of a low interest rate environment, which has helped borrower affordability, and relatively low job losses, which have helped tenants continue to pay their rent. “Interest rates will remain low in 2012 and unemployment will rise only slightly in 2012 from an average of 8.0% in 2011.”
This good news shows the strength of the UK buy to let market and the forecast for the remainder of 2012 looks promising and for the sector to remain stable.
Update on 2012 property prices
Read a report from The Guardian identifying a 1% dip in the national average by the end of 2012. This figure was arrived at using data from the Nationwide building society.
The ONS however showed average house price figures in the UK had risen by 3.3% at the the end of 2012.