Buy to let is looking very positive for UK landlords say Nationwide

Landlord Expert
By Landlord Expert May 29, 2012 09:50

 

Demand for buy to let shows no signs of weakening in the UK as almost two thirds of brokers expect to do more mortgage business with landlords this year, according to a new Nationwide Building Society survey.

The Mortgage Works asked brokers about their experiences in 2011 and their expectations for the buy to let market in 2012. The survey focused on first time landlords, professional landlords, buy to let products and the market as a whole.

It found that 64% of brokers expect to do more buy to let business in 2012 and 69% of brokers said they did 24 or more buy to let applications in 2011, up from 31% of brokers who made 16 or more buy to let applications in 2010.

‘While the volume of buy to let lending is nowhere near the volumes seen before the credit crisis began in 2007, last year’s buy to let lending reached more than £14 billion. This is an increase of 40% from the previous year and we expect it to rise again in 2012. It suggests buy to let is climbing its way back up, which is welcome news for landlords and brokers,’ said Ian Andrew, managing director of group intermediary sales at the Nationwide and The Mortgage Works

 

The survey also found that 71% of brokers predict the number of new landlords will increase in 2012, compared to 51% a year earlier and 48% of first time landlords expect to buy their second property within two years, up from 26% a year earlier.‘The outlook for first time landlords in 2012 remains positive, with two thirds of brokers seeing a rise in first time landlord business in the past six months. In addition, virtually all first time landlords are looking to buy another property in the next couple of years,’ explained Andrew.

Profession landlords are also positive. Some 58% of brokers believe professional landlords will buy more properties in 2012, up from 48% a year earlier and 34% of landlords are investing in  buy to let for long term capital growth, while 43% are investing for their retirement.

‘The positive outlook of professional landlords is reflected in our findings that the vast majority of brokers predict they will buy more properties in 2012, indicating continuing demand in the sector. We can all be encouraged by this optimism, especially given that one in seven clients already have at least four properties in their portfolio,’ added Andrew.

 

 

 

Landlord Expert
By Landlord Expert May 29, 2012 09:50

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