State of Buy-to-Let

Posted on 11/06/2010

City analysts at big-name firms such as Nationwide, Paragon and Savills are already confident of an upswing in the property market. Admittedly, not to it's 2007 zenith, but it's certainly becoming more robust.

Graham Beale, CEO of mutual Nationwide, owners of The Mortgage Works, told Reuters News recently: "We think there is a strong market and demand has increased."

Paragon, who offer mortgages for landlords, is willing to dip its oar into the water as the tide turns and two new big entrants into the UK Buy-to-Let market - Aldermore and Precise - are happy to enjoy a splash around too.

And the favourable exchange rate means foreign investors, in particular, will show more of an interest in the UK Buy-to-Let market.

Luke Mills, director of London residential developments at Savills, is confident there will be more home-grown purchasing too, insisting that the proposed increase in CGT only stands to point towards success in the property market. "We're still a nation who love buying property," he told the international news agency.

Investors would be wise to hold on to their properties for up to 15 years, according to property experts at Birmingham Midshares/Bank of Scotland. They too are confident about the sector's long-term future. This is due to an increase in the need for rental properties - where demand far outstrips supply.

A spokesman for the National Landlords Association confirmed demand for rented accommodation was still high. Tenants were choosing to remain in their accommodation rather than look around elsewhere, he said, which - in the long term - would result in a much more stable market.