Buy-to-let bandwagon gathers pace as number of rental properties listed rises …

Posted on by Listify Me

By
Lee Boyce


PUBLISHED:

15:35 GMT, 13 August 2013


|

UPDATED:

16:01 GMT, 13 August 2013

The number of properties being listed to let grew by 11.4 per cent in the second quarter compared to a year ago, far outrunning the growth in the number of homes for sale, according to new figures.

The rise in the number of new homes available to rent over the year grew at five times the rate of those coming up for sale between in April and June, according to information services company Experian.

The rental market was led by London, which saw a 26.4 per cent increase in the number of properties available to let compared to a year ago , while Wales and the East were the only areas to see decreases.

Familiar sight: The number of properties to let soared between April and June

Familiar sight: The number of properties to let soared between April and June

In contrast, there was a small increase of just 2.3 per cent in the number of fresh house sellers nationwide. In the capital, the number was up two per cent.

Buy-to-let lending conditions have thawed in recent months with lower rates being driven by cheap money from the Funding for Lending scheme. Figures from the Council of Mortgage Lenders last week showed 40,000 buy-to-let mortgages worth £5.1billion were issued between April and July – the highest number, and value, of loans since the third quarter of 2008.

And an increasing number of lenders are also entering the buy-to-let fray. For example, Shawbrook Bank today launched two buy-to-let mortgage through selected brokers. The deals are available up to a maximum loan-to-value of 75 per cent and are available as two or three-year interest-only mortgages.

According to a recent survey by the mortgage provider Buy to Let Business, over 90 per cent of brokers say they felt extremely or relatively confident that the market would grow over the next twelve months.

At the same time, rents continue to increase. The current average monthly UK rent is £737 according to LSL Property Services – three years ago this figure stood at £656. 

Jonathan Westley, managing director of
consumer information services at Experian, said: ‘In some regions, the
housing market remains challenging for first time buyers, particularly
in London, which is constraining activity levels for lower value
properties and keeping a lid on prices in many areas.

‘This is reflected
in the surge in rental properties on the market.’

Flats were by far the most popular property type to rent, accounting for 46.9 per cent of all rental properties, two fifths of which can be found in London – 74 per cent of properties in the capital’s letting market are listed as apartments.

However, terraced houses saw the biggest increase nationwide up by 16.2 per cent annually.

Houses listed for sale over £500k grew by 14% in three months

The analysis by Experian gives an insight into the housing market to enable lenders to understand how peoples’ financial needs are changing.

It found the number of homes coming onto the market for under £250,000 fell by 0.4 per cent.

In contrast, there were significant increases at the higher end. Properties listed between £250,001 to £500,000 were up by four per cent, while those worth £500,001 were up by 14 per cent.

Properties priced under £100,000 and £100,001-£250,000 in the North West fell by 9.9 per cent and 8.3 per cent respectively. 

The region also saw the biggest fall in overall properties for sale, down 6.8 per cent, but saw its rental market thrive as 7.8 per cent more homes for rent appeared on the market.

Detached houses are the most frequent house type listed for sale across the UK, with a total of 55,711 detached properties for sale in the second quarter of 2013 compared to 52,165 in the same period last year, an increase of 6.8 per cent.

Three bedroom houses were the most common size of home on the resale market, accounting for 38.5 per cent of all new listings.

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If you see a bandwagon IT’S TOO LATE

William
,

Bristol, United Kingdom,
13/8/2013 20:09

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Crazy… This money should be for those who want to own their own home. Not people to make a quick buck

skint
,

Cheshire,
13/8/2013 20:08

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The young will never afford a place of their own if prices keep going up so lets hope the BTL market crashes so the youngsters can get a home to LIVE IN and not think of it as an investment.

Roy
,

Birmingham, United Kingdom,
13/8/2013 20:03

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There is a house for everyone’s budget. If you haven’t found one, you’re looking in the wrong area.

David
,

Winchester, United Kingdom,
13/8/2013 19:57

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This Buy to let madness should be brought to an end. Land and housing is a finite resource. If people want to make money by investing, then do it on the stock Market!

Lee Williams
,

Treorchy,
13/8/2013 19:56

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BTL is a business, it’s run for profit. Get used to it !

Kilo Charlie
,

My World, United Kingdom,
13/8/2013 19:56

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Anyone can do a survey on BTL just go down any street anywhere count the houses with dirty curtains unwashed windows uncut grass old cars in drive garbage strewn all over the drive with full up bins, subtract that from the clean well looked after houses and there you have it around 35% on average and rising fast. Welcome to rubbish dump UK from your caring government .

Graham
,

Leeds, United Kingdom,
13/8/2013 19:56

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“The number of properties being listed to let grew by 11.4 per cent in the second quarter compared to a year ago” This can also be read as, ‘The number of BTL properties experiencing void periods grew by 11.4 per cent in the second quarter compared to a year ago.’

A N Observer
,

Midlands,
13/8/2013 19:56

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The essential issue is about having a home with the means (owned, mortgaged, rented or social hoysing) a secondary consideration. It has never been easy for young people to get a first step on the ladder – unfortunately, today’s youngsters extent everything now

Thornburyboy
,

West Country, United Kingdom,
13/8/2013 19:55

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YAWN … another hour another property ramping article. Sounds like desperation. HOUSE PRICES ARE RISING. HOUSE PRICES ARE RISING. HOUSE PRICES ARE RISING. HOUSE PRICES ARE RISING. HOUSE PRICES ARE RISING. But it was all right, everything was all right, the struggle was finished. He had won the victory over himself. He loved House Price Inflation.

John
,

London,
13/8/2013 19:55

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