subject: Buy-to-let property market bolstered by rentals and new lenders [print this page] Buy-to-let property market bolstered by rentals and new lenders
According to the Stridemagazine, online property marketer agency Rightmove reports an increased number of new home listings by 35 per cent after the government's decision to suspend the use of home information packs (HIPs) in late May.
From now on, homeowners can put up properties for sale at a reduced cost, as they no longer have to procure expensive HIPs before the sale. There is likely to be a more flexible and buoyant property market whereby properties can be listed, even if they are subsequently not sold.
Nevertheless, property transactions are also affected by the recent speculation on the capital gains tax hike. It is yet to be seen the extent and impact of the hike on the overall market sentiments.
In addition, the property market has seen a rise in the number of lenders and the expansion of existing lenders for homebuyers. According to Introducer Today, Investec-owned Kensington Mortgages has plans to increase its workforce, focusing on adding more intermediaries to facilitate market transactions. The lender intends to add 50 more to their existing office in Reading, Berkshire.
The lender has also recently launched a range of buy-to-let products for landlords, and initiated mortgages for prime borrowers.
The Association of Residential Letting Agents has earlier remarked that there is inadequate supply of rental properties in the market, in order to satisfy customers' demand. The number of first-time buyers has dwindled.
Helped by the rising rental prices, buy-to-lets are set to become an affordable and more flexible option versus home ownership. Despite the risks involved in letting properties, the business is still considered profitable given the rental prices and the stable income offered by letting. Getting tenants through a reputable estate agency may give more security given the more stringent credit checks and legal support from the agency. Nonetheless, for longer-term protection, property owners would need to turn to landlord insurance for claims against unforeseeable damages or tenant issues.
