Buy to let market running out of steam
The CML has today revealed that the UK buy to let market has rebounded strongly from post-credit crunch levels although it would appear to be running out of steam. The number of buy-to-let mortgages agreed increased by 13% in the second quarter of 2010 with around 25,000 confirmed. While these figures are welcomed by investors in the buy to let market they are just around 25% of the business levels seen prior to the credit crunch and the worldwide economic downturn.
There is no doubt that the buy to let market is "over the worst", at least in the short-term, but with many experts predicting difficult times for the UK economy and a difficult period for the property market it will do well to maintain current growth levels. Indeed even the CML believes that there are signs that the sector is easing back although how far it will fall remains to be seen. It is also worth noting that a large number of buy to let investors of years gone by have now left the market, many having been forced to sell on their properties at knockdown prices. The buy to let sector enjoyed something of an Indian summer for much of the first decade of the 2000s although whether these "good times" will return again remains to be seen.
Share this..
Related stories
What does the Dubai property collapse mean for the UK?
As we covered yesterday, the announcement that the main property developer in Dubai, and state-owned parent company, has asked for debt repayments to be suspended is a major blow for the sector. Even though the Dubai property sector has fallen substantially over the last 18 months, many were still surprised that the main developer Nakheel appears to be in so much trouble. In effect the company...
Read MoreTop ten tips for selling your house
With the housing market slackening off and people being put off buying by high prices and rising interest rates, vendors are finding it harder to sell their properties.With this in mind, a survey by Nationwide has looked for the factors that will help vendors sell their home.The came up with the following top ten tips:1. Tidy up - 55 per cent of potential buyers said an untidy house was off puttin...
Read MoreFivefold increase in property millionaires over last decade
Santander, the owner of Abbey and other UK banking brand names, has today issued a report suggesting there has been a fivefold increase in the number of property millionaires in the UK since 2000. Despite the fact that the credit crunch has impacted heavily towards the top end of the market, the bank estimates that there are around 132,000 "million pound" properties in the UK at this point in time...
Read MoreHouse prices firm but demand starts to weaken
In a rather bizarre situation we have seen the number of potential buyers in the UK property market fall in the four weeks to May 8 while the cost of houses in the UK increased by 0.7%. It is unclear as to why the price of houses in the UK would push higher if demand is weakening although in all honesty it has been near impossible to forecast the direction of UK property market in the short term....
Read MoreGeorge Osborne set to target banks and property owners
In a move which will certainly upset the traditional core Conservative party support in the UK it would appear, from leaks emanating from 11 Downing St., that George Osborne is set to make UK banks and property owners pay the price for the depressed UK economy. There have been rumours for some time about a potential banking levy and the proposed increase in CGT could hit as high as 50%, on a par w...
Read More