Landlords are increasingly confident about the availability of buy-to-let finance.
This is according to new research from Paragon Mortgages, which shows rental property owners are now more optimistic than they have ever been since the financial crisis struck.
Some 44% of landlords told the organisation they thought buy-to-let finance was readily available in the first quarter of 2014. This represents a 2% increase on the year before and is the highest figure recorded since Paragon started the survey in 2010.
John Heron, the company’s Managing Director, stated: “The availability of buy to let finance is vital to a healthy and competitive private rented sector.”
“As the market has recovered we have seen the general improvement in confidence reflected in how landlords are feeling about the availability of buy to let finance.”
The growth in the buy-to-let market has been driven by a different agenda than the boom of the early ‘noughties’. Then, speculation on double digit percentage valuation rises each year on their properties, appeared to drive more and more demand. The latest growth in the buy-to-let market has been primarily driven by long term investment strategies and excellent rental yields.
Widely reported shortages of housing stock in the UK have driven many would be buyers into long term rental solutions for their domestic residence. Lenders in turn have introduced a greater range of buy-to-let finance solutions catering for a wider number of landlords with differing financial circumstances.
Landlord confidence has grown significantly over the past months. Close to a third (31%) of rental property owners said in the survey they think the country’s financial situation will be ‘good’ or ‘very good’ in the coming years, compared to just 10% in 2013.
If you would like more information on buy-to-let finance, our fully qualified and experienced consultants here at Express Mortgages are ready to help.