2008 rental demand “extraordinary”

Demand for rental property dipped slightly in October, with the number of leases commencing, down 2.35% on September, according to lettings agent Your Move.
The Your Move Rental Demand Index uses two-month rolling averages to measure demand for lettings in the UK and since the index cut-off date, Your Move has tracked a recovery in demand. [...]

Assetz sees window of opportunity for investors

Assetz believes that a brief window of opportunity is opening up for investors and homebuyers as lower interest rates take effect, coinciding with increasing pressure by banks on developers to sell existing stock and increase cash reserves.
The firm notes that there are now several buy-to-let mortgages available on the market at around 5.5%. With rates [...]

Landlords urged to insure against defaults

Landlords may resist covering themselves against the risk of defaulting tenants, even as possessions rise, because of a fear of high premiums, according to Let Insurance Services.
It warns that this ‘strategy’ could prove to be a false economy now that the risk to the lettings market has increased driven by rising unemployment and, in some [...]

Inflation fall makes December rate cut more likely

The fall in the Consumer Price Index to 4.5% has led Mortgages for Business to believe that rates will be cut further in December.
The buy-to-let broker has also stated that it wouldn’t be surprising if the Bank of England slashes a further 1% off Base Rate before the end of the year.
While the spread between [...]

Cautious optimism pervades landlords

In a poll taken at the most recent RBS Intermediary Roadshow held in Manchester, nearly a third (31%) of mortgage intermediaries thought that their landlord clients are taking an optimistic view about their prospects for the next 12 months and will be looking to add properties to their portfolios.
Nearly six in 10 (58%) thought that [...]

Accidental landlords look to sell at realistic levels

The number of ‘accidental landlords’ who joined the lettings market in the summer as their homes failed to sell, are returning to the sales market with more realistic price expectations, according to Cluttons.
Thousands of vendors found they were unable to sell their property over the summer and opted to rent it out in the short [...]

Look out for novice letting agents

A number of estate agents are putting landlords and tenants at risk by turning into letting agents overnight, according to Robinson & Hall. This is largely because some predict around 100,000 estate agents could lose their jobs by the end of 2008.
Plummeting house sales could force one-third of all estate agencies to close, and this [...]

NLA doubts banks will pass on interest rate cuts

NLA Mortgages, the free sourcing and quotation system for landlords, has it’s doubts that today’s expected cut in bank base rate will encourage lenders to pass on the savings to landlords.
Simon Gordon, head of communications at the National Landlords Association, said: “It’s about time lenders started to play ball and pass these latest rate cuts [...]

Slump in first-time landlords

Professional landlords are continuing to increase their dominance of the buy-to-let sector at the expence of the ‘first-time landlord’ according to research from Paragon Mortgages.
A panel-based survey of 200 mortgage brokers revealed the proportion of landlords either applying for portfolio extension mortgages or remortgages continued to grow in the third quarter of 2008.
Meanwhile, the number [...]

Variable rates gain popularity

35% of residential borrowers took variable rate mortgages over the past three months, up from 24% last quarter, according to Legal & General research.
However, residential borrowers still prefer fixed rates overall – 63% took fixed rates, down from 75% last quarter.
Buy-to-let borrowers prefer variable rates – 55% took this type of mortgage vs. 43% on [...]