The buy-to-let market does not show any signs of slowing down as many existing landlords are looking for more opportunities to invest and there are lots of newcomers eager to join the market as well.
New research from the Nottingham Building Society (The Nottingham) shows that almost a fifth (19 per cent) of experienced landlords have plans to buy more properties to let and some 4 per cent of homeowners are considering their first buy-to-let investment over the next 12 months.
This increased appetite for entering the market, which is already worth more than £188.3 billion, suggest further strong growth for buy-to-let in the future, according to The Nottingham.
Overall, more than a quarter (26 per cent) of mortgage brokers expect a dramatical rise in demand for buy-to-let products in the next 12 months. More than two in five (41 per cent) of brokers believe there will be a slight rise and only 2 per cent believe that demand for these products will fall.
“The nation’s love affair with property is as strong as ever and this is reflected in the growing demand for buy to let properties. Our research suggests that this is also being fuelled by the recent changes to how people can use their pension money. Clearly some want to use this money to buy property to rent out, ” Ian Gibbons, senior mortgage broking manager at Nottingham Mortgage Services, said.
“When considering a buy-to-let mortgage it is important to seek professional Whole of Market (WOM) advice as some lenders may offer products with higher LTVs than the average, lower application fees, some lenders don’t restrict lending based on the number of properties in your existing portfolio and some don’t restrict first time buyer or first time landlord investors.
“A professional WOM adviser will be able to navigate the extensive range of lenders and products to find the right solution for you, based on your requirements,” he added.
