>Buy to let funding restrictions are set to remain tough this year, according to LettingFocus.com.
David Lawrenson, private rented sector expert at the property website, commented that the banks’ requirement to pay back some of the money lent to them by the government will mean finance could be hard to come by for owners of commercial property in London and other parts of the UK.
“I certainly don’t think it is going to get any easier,” he said. “I expect mortgage fees and the typical level of deposit required to stay high. And there is a pretty strong chance that the base rate will go up – making all mortgages more expensive.”
Mr Lawrenson’s comments follow research from Paragon showing that tenant demand for property to rent in London and other UK towns hit a two-year high in the final three months of 2010.
Four in ten landlords reported an increase in tenant demand during the fourth quarter, compared with 36 per cent in the preceding quarter.
Buy to Let Investment News
>The average monthly rent in the residential buy-to-let sector now stands at £676, according to figures released by LSL Property Services. This rise is largely due to very high demand among tenants, particularly in the London area and in the southeast. The main reason for the large number of tenants and tight supply of properties is the continued dearth of both residential mortgages for first-time buyers, as well as buy-to-let products for landlords looking to expand their existing portfolios.
Further tightening the supply of rental properties in the buy-to-let sector was the fact that a growing number of temporary or accidental landlords have by now sold their properties.
Yet there are very significant differences in what £676 per month would get a tenant seeking to rent a home. In the Midlands, it may be possible to even find a semi-detached house, while one may have trouble finding even the smallest flat for this amount in Central London.
PriceWaterhouseCooper’s research suggests that house prices will increase each year by approximately 2% over the next decade and this may also serve as positive news for landlords. But specialists point out that the rate of increase may be lower in the next few years than the average annual rise of 4% per annum, measured through much of the nineties and until the end of 2007.
>According to economists associated with Ernst & Young, the Bank of England is likely to keep the country’s base lending rate at or near the historic low of 0.5% until late 2013, primarily to ensure that inflation does not slip below 1%. At the moment, inflation is expected to surpass 2%, but this is mainly due to the rise in VAT, as well as increasing energy prices, but it may fall to around 1% in the near future. Ernst & Young believes that the Bank of England will have to keep interest rates at 0.5% for the next two to three years, in order to avoid this scenario. This may serve as a welcome relief for many residential landlords who worried about how they would manage if interest rates on their buy-to-let loans were to increase at the end of this year or in early 2011, as had been predicted.
Property Investments in Woodside London CR0
Woodside has its own small high street just to the west of the leafy Woodside Green, which is overlooked by a number of larger Victorian houses converted into flats. Norwood Junction station, which is a few minutes walk from the busy Portland Road, is the first stop from East Croydon and serves mainline London stations with a regular service.
Property Investments in West Ham London E13 , E15
Ethnically diverse, multicultural ambience. Interesting shops
Property Investments in Wembley London HA0
Large diverse northwest suburb, good sized housing, gardens. Convenient for M1 giving access to North and M40 giving access to the West
Property Investments in Welling London DA16
Welling is a large town centre situated in the west of Bexley Borough. It is home to over 300 shops and businesses and offers you the traditional shopping experience along one of the longest High Streets in London.
Property Investments in Waterloo London SE1
Dominated by Waterloo Station itself and dull 1960′s office blocks, only during the past few years have developers created flats and apartments to satisfy the growing demand for inner city living. The largest developments sit either side of the Hungerford Bridge.
Property Investments in Tower Bridge London SE1
A forgotten area after the docks declined in the 1970′s, now rejuvenated with riverside flats and apartments and the arrival of the Jubilee Line. Trendy bars, restaurants and shops lie east of Tower Bridge in Shad Thames. Rotherhithe remains the focus for much of the riverside development. Plush apartments and converted warehouses draw the attentions of the city set, whilst Bermondsey still retains a reminder of its past with several scruffy council estates. Some Victorian cottages and terraces remain further inland.
Property Investments in Totteridge London N20
Northern suburb, large houses – many with gardens. Good access to M1 and North
