View more on these topics

Buy-to-let thrives on crisis

Buy-to-let landlords are well positioned to benefit from the liquidity crisis, says Your Move.

The online estate agency claims that recent product withdrawals and tightening mortgage criteria are squeezing first-time buyers’ ability to get onto the housing ladder.

This is increasing demand for rental accommodation, playing into the hands of landlords.

David Newnes, managing director of Your Move, says: “The start of 2008 has seen considerable growth in the buy-to-let sector. Squeezed credit and volatile mortgage rates have contributed to increased demand for rental accommodation.

“First-time buyers with little or no deposits are finding it impossible to secure high LTV mortgages and buy-to-let is filling the gap as clients still need roofs over their heads.”

Your Move says it has seen a 21% increase in the number of leases taken out in the first two months of this year compared with the same period in 2007.

Mortgage Express claims its landlord clients are benefiting from the liquidity crisis, having secured the high- est rental yields seen since 2005.

Gus Park, director of intermediary sales at MEX, says: “Things are looking good for landlords. Yields are the highest the market has seen in years and property values are falling. This means there are plenty of opportunities for continued investment.”

BM Solutions’ buy-to-let index last month revealed a 13.1% rise in average rents.

Tim Hague, managing director of BM Solutions, says: “Our research suggests that buy-to-let landlords continue to do well.

“With solid rental demand, the outlook for the sector in 2008 and beyond remains strong.”

Recommended

Reconsider the role of non-execs

With the emphasis on senior management in delivering the FSA’s Treating Customers Fairly objectives, the role of non-executive directors is increasingly important, says Bill Warren

New home for edeus

Specialist lender edeus has moved up the property ladder into new offices dubbed edeus house.The space now hosts all Wolverhampton based employees, and offers a number of greatly improved facilities including; extra car parking, increased desk space, a team breakout area, more meeting rooms and enhanced private office facilities. Built and designed specifically to for […]

Praxis joins PMPA

Specialist packager Praxis has joined the Professional Mortgage Packagers Alliance. Vic Jannels, chairman of PMPA, says: “We look forward to the growth it will bring to the alliance.”

Money Partners to axe jobs

Money Partners is locked in negotiations over the number of jobs it will have to axe due to harsh market conditions.As Mortgage Strategy exclusively revealed last week, the lender, which was acquired by Goldman Sachs from Kensington Group in January, has informed staff that a number of jobs will be placed under review in the […]

Newsletter

News and expert analysis straight to your inbox

Sign up