Boom time in Buy-To-Let MPPI
Talk over the past few years of a buy-to-let bubble being about to burst has not come to fruition. In fact the opposite is true - becoming a landlord remains a good means of making money over both the short and long term.
The most recent survey from the Royal Institution of Chartered Surveyors (RICS) revealed that rents are rising as tenants return to the lettings market.1
It found that chartered surveyors are reporting the biggest increase in tenant demand in four and a half years, with 27% more reporting a rise in new lets rather than a fall. This is partly due to a renewed upturn in house prices pushing potential buyers, especially first timers, back to the rental market.
The survey also dispelled worries that Chancellor Gordon Brown's shock U-turn, which means that residential property cannot be part of a self-invested personal pension (SIPP), would hit buy-to-let hard.
It stated: "It is clear that individuals are still using buy-to-let to secure their pension futures, even though these have not been allowed into the Government's SIPP schemes. Only 5% of landlords have sold their buy-to-let investment as opposed to seven per cent in the same period last year."
Yet another piece of good news is that the biggest ever study of the UK market has proclaimed confidence in buy-to-let is on the up.2
It found that 89% per cent of landlords expect rent prices to either increase, or stay the same and eighty 6% are planning to either maintain, or increase their property portfolio this year.
It's vital that customers understand the best mortgage options with buy-to-let as well as the importance of having Buildings and Contents insurance (B&C) in place.
The Council of Mortgage Lenders (CML) checklist for potential investors at www.cml.org.uk points out that it's the legal responsibility for landlords to carry out repairs and they must have Buildings insurance.
All sorts of incidents mean landlords will have to shell out quickly - a window could be smashed, a house could be flooded, and the plumbing could go on the blink. To avoid being out of pocket, landlords should have the appropriate policies in place to cover this.
To make it easier for intermediaries to find the best deals, Paymentshield is adding its Landlords Building & Contents range to Inertia Version 3.
The range is specifically designed to protect homeowners who let their properties to tenants.
More Information about Landlords Buildings & Contents on Inertia
- RICS Letting Survey 28/02/06
- Bradford & Bingley press release, 30/1/06