A new study by Mortgages for Business reveals a 35% increase in the number of buy to let mortgage products in the last three months.
In April, 298 buy to let deals were available; now there are 403. This must be due in part to an additional three mortgage lending companies offering buy to let products.
Buy to let yields have also risen. Vanilla products offer a yield of 5.8%, up 0.2 percentage points on April, whilst complex deals could offer as much as 10%.
Buy to let investors could be on to a really good thing at the moment as average rents in the UK have now topped £700. The latest Buy to Let Index from LSL Property Services shows that average monthly rents rose by £28 from June 2010 and now stand at £701.
Prospective first time buyers in London, who are already struggling to raise a contractor mortgage deposit, will be distressed to learn that the average monthly rental in the Capital has now reached £1,006. However, rents in the West Midlands and East England increased at the fastest rate last month. In the East Midlands, Yorkshire and Humberside and the South East of England, average rents actually decreased last month.
LSL Property Services’ commercial director, David Brown, said that tenant demand continues to grow and there isn’t enough property to match it. This situation is likely to continue in the foreseeable future as mortgage finance remains hard to obtain.
© 2010 All rights reserved. Reproduction in whole or in part without permission is prohibited.
