Buy to Let Market Back on Track for Growth

16 June 2012 Categories: News

Buy to Let Market Back on Track for Growth

According to recent figures released by top London estate agent, haart, nearly one in five mortgage applications processed each month is now a buy to let application. David Miles, managing director of financial services at haart believes this could signal a new period of growth in the buy to let market; a growth which is needed if tenant demand is to be satisfied.

The number of privately rented homes has increased by more than 50% over the last five years, rising from 3.4million to 4.8million. This figure is predicted to continue rising as well, reaching around 5.9million by 2016.

The main reason for the increased application rate for buy to let mortgages, says Mr Miles, is that the achievable yields remain healthy even with the current credit crunch. People are being to see that property investment is one of the most profitable forms of investment long term, and one that can deliver a steady net yield of over 4%.

Thankfully mortgage lenders are also seeing the potential of the buy to let market with an ever increasing number of mortgage options steadily becoming available. Many can now see that the private rental sector is one of the only property sectors to have grown through the credit crunch, and that the growth doesn’t seem to be abating.