Buy To Let Market Booming As Public Choose To Rent Over Buy

[National PropertyPortfolio]

We are seeing a significant shift in the housing market with the more people choosing to rent rather than buy their property and as a result we are also seeing more buy to let investors entering the market to accommodate this boom.

Furthermore as we have seen an increase in demand for rental properties, we have also seen an increase in the cost of renting as well. This is perfectly normal as the demand has increased so dramatically, so to have the costs of renting but as more landlords enter the buy to let market, we could see them start to compete with each other which could see rental costs fall.

Why?

One reason as to why renting has increased has been put down to the difficulty people have in getting a mortgage application accepted due to the lending criteria being much more strict than it used to be. Moreover many families struggle to save up enough money to obtain the necessary deposit that the lenders are now requesting.

We have seen that would be house buyers are choosing to wait or even completely miss out trying to get on the property ladder due to the turbulent economy. As house prices have been falling it has meant that consumers have developed a fear that if they do enter the housing market the price of the property could fall below the mortgage they take out.

Final Word

Lenders have stated that they have seen an increase in borrowers looking for deals in the buy to let market as opposed to private buyers looking to purchase a house with a mortgage. Recently we have also seen many landlords using remortgages as a way of financing their portfolio expansion of buy to let properties.

www.nationalpropertyportfolio.co.uk

[Mortitia]

Now tell me something I don't know. Talk about stating the obvious.

Mortitia