|New Deals in the Pipeline for Buy-to-Let Opportunities
We note with interest that the buy-to-let market is growing fast and many mortgage providers and are now deciding that this is where they want to be. As the availability of social housing declines, the demand for residential rental properties increases, thereby making it an attractive proposition.
According to Capital Economics, rents are at a record high whilst voids are at a record low; no wonder lenders want a piece of the action, with predictions that the rental sector will make up 17% of the UK housing needs in the next 5 years.
New entrants include Santander, Peterborough Building Society, Metro Bank and the Yorkshire Building Society, all of who are set to launch new products this year. Of course, we still have the market leaders in Nationwide and the Lloyds Banking Group who currently have approximately 80% market share.
As people find it harder and harder to get their foot on the ladder in terms of purchasing a property, they are increasingly turning to the landlord… although we advocate caution, maybe it’s time you poked your toe back in the water?