Following last week’s news about Bank of England keeping the base
interest rate at 0.5% CML published news last week about how BTL lending was
19% higher by volume and 31% higher by value from year to year comparison from
last year.
Here are comments from a few of the companies who will be exhibiting at
the Property Investor Show
in October and work in the industry.
Joshua Elash a Director at MT
Finance comments:
It is nice to see some positive data.
The figures released by the Council of Mortgage Lenders provide direct evidence of the continued resurgence of the U.K's property market fuelled in part by low interest rates and the impact of Government initiatives such as the Help To Buy lending scheme.
With interest rates set to stay put to mid 2016 there will inevitably be further and increased interest in the Buy To Let sector as investors seek alternative means of generating returns. This market will be an exciting space in the coming months and we hope that higher lending levels continue.
With house prices in July having exceeded their previous 2008 peak level there is some concern, however that unless supply levels can be increased another bubble may yet be laying in wait. Residential development needs to be encouraged at the local and national level. It would be equally beneficial to see an increase in liquidity in the development finance sector.
It is nice to see some positive data.
The figures released by the Council of Mortgage Lenders provide direct evidence of the continued resurgence of the U.K's property market fuelled in part by low interest rates and the impact of Government initiatives such as the Help To Buy lending scheme.
With interest rates set to stay put to mid 2016 there will inevitably be further and increased interest in the Buy To Let sector as investors seek alternative means of generating returns. This market will be an exciting space in the coming months and we hope that higher lending levels continue.
With house prices in July having exceeded their previous 2008 peak level there is some concern, however that unless supply levels can be increased another bubble may yet be laying in wait. Residential development needs to be encouraged at the local and national level. It would be equally beneficial to see an increase in liquidity in the development finance sector.
Matthew Fleming-Duffy Director at Cherry Mortgage & Finance Ltd
suggested:
The figures released by the CML confirm that the buy-to-let market is in
very good health. Assistance from the government in the form of the Funding for
Lending Scheme and forward guidance from the Bank of England have provided
property investors with a stable platform to purchase their first buy-to-let
property, or indeed increase an existing portfolio. Rates are very low and are
set to stay that way for at least 3 years and mortgage availability is the best
it has been in years. It’s hard to think of another asset class where you
receive good capital growth and excellent income yields such as those found
with investment property.
The continued growth within the BTL market is bound to be greeted
positively with property investors looking to continue to grow their businesses
investing in property. The other statistic on the up is the demand for rental
properties with the number of people being able to buy their own homes
depleting.
What’s important to focus on, whilst the property professionals are
taking advantage of the stronger investment market conditions, is that they are
also providing necessary housing options for so many single professionals and
young families in desperate need for their own independence. However people
considering investing need to think carefully before making the decision to
purchase that rental property - any investor building their portfolio needs to
ensure they have their longer term plans set out – whilst the market conditions
are currently attractive, this isn’t a stable economy so the investors need to
ensure the property works out financially based on a longer term view, with
‘normal market rates’.
Lenders like Shawbrook Bank are committed to supporting the property
investor market. They even offer part capital repayment options on top of the
normal interest only facilities as this allows clients to reduce their loan
balance, allowing re-mortgaging in the future even more achievable and also
assisting with building a stronger portfolio.
Once again the team of Property Investor Show expects this to be one
of the hot topics discussed at the event so if you haven't already do register
to get your tickets the next Property Investor Show - you can get your tickets
from this link.
If you will be interested in exhibiting or advertising at the show feel free to contact us via enquiries@propertyinvestor.co.uk and quote the word Blog.
If you will be interested in exhibiting or advertising at the show feel free to contact us via enquiries@propertyinvestor.co.uk and quote the word Blog.