Buy to Let market strengthens

Figures released today by Your Move confirm the increasing popularity of renting a home, compared to buying. First time buyers in particular are finding that either, their deposit isn't big enough, or they are being put off by media speculation of further large falls in house prices. For those wanting a home of their own, renting is now seen as a viable option.

The figures show that the number of new leases taken out in August was some 65 per cent higher than for the same period last year. This is interesting in that The British Bankers' Association (BBA) have today said that mortgages approved for house purchases had fallen by roughly the same percentage to just 21,086 in August. This is down from 58,564 in August 2007 when mortgage lending had already started to slow.

Fears that the rental sector would be over supplied by those deciding to rent rather than sell appear not to have materialised, and in some areas, demand has been strong enough to strengthen rents. With some new and innovative buy to let mortgage products beginning to see the light of day, some professional investors now feel the time is right to begin to expand their portfolios.

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