Landlords across the country are confident about prospects in the buy-to-let mortgages sector over the coming year, but how much longer will buy to let investors be able to glean high rents easily?

According to SimplyBusiness, almost 80% of those rental property investors questioned said they were confident about buy-to-let over the next 12 months, but predicted rises in interest rates and new tax breaks for first-time buyers could spell danger for professional landlords.

For the last two years, landlords have enjoyed a period of high demand for their properties, as mortgage availability stalled and housing stock plummeted. This has meant landlords could charge their tenants more, and could be sure their properties were not empty for long with more tenants queuing round the corner.

But it seems property prices are beginning to pick up in many areas, according to Halifax – which means more people are buying property again. On top of this, mortgage availability is easing up for many borrowers and the Chancellor recently enacted new rules where wannabe first-time buyers, the lifeblood of landlords, get a hefty tax break on their first home.

Julian Watson, landlord product manager at SimplyBusiness, says: “With high prices and low interest rates, landlords tell us they are able to reap healthy margins at the moment. However, in our study, many expressed grave concern for the longer-term prospects of the market. They are realistic that interest rates can’t stay this low indefinitely, and are nervous of initiatives the next Government will introduce to assist first-time buyers.”

If you are concerned about what the future may hold for your buy-to-let business, talk to a mortgage expert about making sure your finances and your potential is robust.

SOURCE: SimplyBusiness, 22/04/10, Halifax, 25/04/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

There is growing evidence that clients are prepared to pay higher rents for green buildings, according to energy efficient specialists Sabien Technology.

It says while there is a long-established trend in America for buildings with a good energy rating to attract a higher rental income than other buildings with a lower rating has started to take hold in the UK.

Alan O’Brien, chief executive of Sabien says: “There is growing evidence that clients are prepared to pay higher rents for energy efficient buildings in the UK. By going green and future proofing buildings, owners can enhance yields and improve occupancy rates. Over the life cycle of a green building the savings can also offset a higher initial outlay and result in low, or even negative, carbon reduction costs.

“Tenants are attracted to green buildings as they see sustainability as an important product differentiator in the marketplace."

While it may be costly to make your commercial or residential property greener, you could save money in the long run. And it is possible to use your property to raise funds to pay for double glazing, insulation, efficient boilers, solar panels and any number of other green implements that could save on your bills and possibly allow you to glean more rent from green-minded renters. Talk to a buy to let adviser about your finance options and your property's potential.

O'Brien says: “In the long term, buildings which perform poorly in terms of sustainability and energy efficiency will become less attractive to occupiers as the Government introduces penalties to encourage energy efficiency and increased sustainability."

SOURCE: Sabien, 20/04/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

Many Brits got into buy to let investment over the last decade because rates were cheap and property prices were on the up. But thanks to two years of recession, being an amateur landlord is a tough job – so if you want to dedicate yourself to making money from property investment full time your first port of call must be a mortgage adviser.

A few years ago you couldn't turn on the TV without being enticed into investing your savings in property. During the boom times it seemed like a good idea and profits were quickly gleaned with little effort.

But now buy to let credit is hard to get hold of and unemployment is rife all over the UK meaning you are always at risk of losing out on some or all of your rental income thanks to failing rent from tenants. On top of that, many properties in the UK have suffered significant devaluation. Buy to let isn't as easy as it once was and to make it work takes a lot more time and effort.

But it still can be profitable, and if you recognise that and want to work harder at making the most from your investments and possibly invest further you may choose to become a professional buy to let landlord. But to do that you need professional help.

A professional landlord needs new types of credit, needs short and long term business plans and needs the right protection to make sure his or her business is safe. That's why a professional landlord needs help – a buy to let adviser can introduce a potential professional to all that they need to fund their new career and can always be there to help them fund, maintain and protect their portfolio.

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

There is not enough rental property to meet consumer demand in the UK – and the situation is worsening, according to the latest research from the Association of Residential Lettings Agents.

While this is not an ideal situation for a nation so proud of home ownership it is a great opportunity for landlords to take the reigns and create more rental property by increasing their portfolios – and making themselves a tidy profit in the process.

Its research found that during the first three months of this year, two thirds of letting agents reported more tenants than properties available. This is a 50% rise on the last three months of 2009.

ARLA says insufficient supply of good quality property means that the private rented sector is struggling to meet demand. There simply isn't enough properties for people to rent in the UK. That means every landlord who decides to increase his or her portfolio is not only helping out Brits but is also taking advantage of a buoyant market.

A buoyant market is great news for holders of buy to let mortgages. It means that rents are higher nationally and it means that there is less chance of having an empty property for any given amount of time. ARLA says the speed with which tenants are snapping up homes has increased over the last year – properties are vacant for an average period of just 3.6 weeks, which is down from 4.2 weeks 12 months ago.

But Ian Potter, operations manager at ARLA says landlords can't do it alone: "Property investors need to be treated as businesses, with proper incentivisation to invest in and refurbish older properties. This will improve standards, help the environment with improving insulation, and encourage much-needed investment to help get the market back on its feet."

SOURCE: ARLA, 14/04/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

The lure of buy to let success is becoming too much for some landlords and despite the continuing tough economic climate, one in eight landlords are looking to purchase more investment properties.

According to Paragon Mortgages, 12% of landlords plan to purchase investment property in the second three months of 2010. Those who listened to good financial advice and those who did the right thing with their investment and their money still have the means to secure another buy to let mortgage and make their portfolio more profitable.

The data suggests landlords should be confident enough to try and get hold of a new loan – Paragon says tenant demand remains strong, with 24% of landlords stating that demand grew during the quarter. They also think tenant demand will strengthen considerably, with nearly four out of 10 landlords forecasting demand for their property to be higher in 12 months’ time.

And it's not just rental income protection that's on the up – the average portfolio value has increased for the second quarter in succession, rising by 6.1% during the period to £1.52m – landlords expect the average value of their portfolios to be 1.2% higher in twelve months’ time.

Nigel Terrington, Paragon chief executive, says: "Demand for property investment has remained strong during the recession and has improved since house prices stabilised. Landlords know that the long-term forecast for tenant demand is extremely healthy, with socio-economic and demographic changes leading to growth in the number of households calling the private rented sector home."

So if you think it's time to build on your portfolio, talk to a buy to let mortgage adviser about your chances of securing a loan. With the right advice and the right mortgage it might just be the right time for more buy to let profits.

SOURCE: Paragon, 14/04/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

Are you struggling to keep your buy to let empire standing? If you are having trouble paying your mortgages every month you are not alone – there are professionals out there who can help you get by.

A few years ago it felt like buy to let was a way to print money – the mortgages were cheap, the deposits were low and the rents were guaranteed. You couldn't turn on the TV without seeing a show telling how fantastic buy to let investment was.

But now, in a new financial world, things are a bit different. Those cheap loans are now a huge burden for some and it has finally been proven that making a profit with buy to let is hard work. Lenders are not happy to remortgage to offer a new line of credit – the buy to let dream has become a nightmare for some.

If you are regretting your investments, talk to a buy to let expert. The financial responsibility is still yours, but there are ways to alleviate the pressure. It might be that you can get a new line of credit, you might just need to rearrange your finances or you may even have to sell off a part or all of your buy to let empire.

Every struggling landlord will have a different solution to help them. But you can be sure that a buy to let professional will be able to find the right solution for you that will make sure that you stay above water.

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

The very lifeblood of the buy-to-let sector is rental income, so any news of a rental increase across the nation is good news for landlords in the UK.

According to statistics by FindaProperty.com, rents increased by 0.7% over March, marking two straight months of rises in rental prices. FindaProperty.com’s most recent rental price index stood at £820 per month, which is a £16 increase since the beginning of the calendar year.

And according to the Residential Landlords Association, there has never been a lower supply of rental property since October 2008, which is leading to the increase in rental asking prices. Simply there are more people looking to rent than there are places to rent and that's a good business opportunity for landlords.

This means it is a great time to invest in buy-to-let. One of the biggest battles for landlords is being able to guarantee rental income – without it the buy-to-let mortgage must be paid by the borrower and that can lead to a lot of financial problems. But if there is a good, steady stream of adequate rental income buy-to-let profits are not far behind.

Also, the RLA says that relatively high demand, coupled with a declining stock of properties may ensure further rises in rents until at least the end of the year.

Talk to a buy-to-let mortgage adviser about what sort of loan you could invest in during this boom period for buy-to-let profit. If done correctly, and if the property is right, buy-to-let investment could offer much better returns than most other financial investments.

SOURCE: RLA, Findaproperty.com, 29/03/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

Commercial property owners are putting their investments at risk from under-insurance by failing to maintain their sum insured at adequate levels, according to Aviva.

The insurer says the sum insured by the property owner should be the amount it would cost to completely rebuild the property and should include the costs of removing debris as well as architects' and surveyors' fees, as well as any contents that may be lost should the worst happen to the property.

Mark Dunham, commercial property underwriting manager at Aviva, says: "We have seen an increase in the number of properties that are underinsured during the recession but when money is tight and people need to reduce costs it's important that this is not at the expense of their insurance cover."

Insurance is peace of mind should the worst happen and having accurate sums insured on a property is paramount. The last thing you want to discover after catastrophe befalls your property is that your sum insured is inadequate – it is vital to guarantee receiving the full amount in the event of a claim.

Dunham says: "If the sum insured is too low, the policy may not provide enough money to rebuild the property. In the current economic climate, it could prove very difficult and costly to borrow the money you need to cover the shortfall thus putting the finances of the business under increased pressure."

You need to be sure that the insurance covering your property investment is complete and robust. Talk to a buy to let professional about your policy and exactly what it needs to include. Paying a little now makes sure you pay out even less should the worst happen.

SOURCE: Aviva, 26/03/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

There are simply not enough rental properties in the UK and people are crying out for good accommodation – so take advantage of the drought by investing in profitable buy-to-let right now.

Thanks to a lack of new homes being built coupled with people's inability to get mortgage credit, the UK is in dire need of good quality rental accommodation, according to the Association of Residential Letting Agents.

It found that more than half of respondents at its latest conference said there is an insufficient supply of rental stock as the biggest issue facing the sector. Ian Potter, operations manager at ALRA, says: "This is a very serious issue. At the end of last year we highlighted that a lack of properties will be a defining factor in the housing market in 2010 and our member agents across the country have confirmed this opinion as fact. The UK is in dire need of good quality rental accommodation."

Demand for property means rents rise and that means more potential profits for buy-to-let mortgage investors. If you pick the right property you can afford to set your rent higher than if the nation was awash with property.

If you have the right property, the right mortgage and the right advice under your belt, there is no reason why you cannot make a killing through renting out a buy-to-let property. Talk to a buy-to-let adviser today about taking on an investment property that can offer you returns better than any other investment vehicle.

SOURCE: ARLA, 27/03/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

The number of landlords claiming on insurance against missing rents increased significantly last year – while non-payment of rent is an unenviable situation for any landlord this news proves the need and the importance of the right landlord insurance products.

According to Endsleigh, the number of claims for the non-payment of insurance increased by 32% in 2009 and by 58% in the second half of the year alone. Carlos Thompson, head of business development at Endsleigh says: "The increase in landlords and lettings agents suffering defaulting tenants is a big problem in the industry at the moment.

"It is likely that many of these tenancies were taken up several years ago before the recession took effect, and what we're seeing now is that people's financial situations have changed and they are finding themselves struggling to meet payments that they were previously comfortable with."

If your tenant does not pay their rent then it means you are left with the buy to let mortgage bill at the end of the month. That might be affordable for a month or two but what happens if the tenant continues not to pay their rent? How long could you handle your buy to let mortgage repayments without a stream of rental income?

With the best buy to let landlord insurance you don't need to answer that question. You can be safe in the knowledge that with the right insurance your mortgage, your property investment and all your other assets are safe.

SOURCE: Endsleigh, 23/03/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog