Tuesday, 13 August 2013

That's got to be good news!!!

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.

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.

Shawbrook Bank comments:

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.

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