New data reveals why London is best for buy-to-let
- 10th January 2012
- Landlord Property News
74% of ARLA agents report that there are more tenants than property available, meaning London will keep delivering high yields.
New research from the Association of Residential Lettings Agents (ARLA) highlights an imbalance between supply and demand for London rental property.
Almost three quarters of ARLA members (74%) are reporting that there are more tenants than available properties at present, with most of the disparity coming from London and the South East.
Reasons to become a buy-to-let landlord in London include:
- High demand all year round
- Record high rents caused by a shortage of stock
- Favourable mortgage conditions on offer for buy-to-let landlords
- Low void periods due to high demand
- Great exit prospects for investors
Stephen Ludlow, Chairman of ludlowthompson, says: “Many of our landlords saw double digit rent increases last year. While some experts have sounded a note of caution for the coming year, we remain bullish that 2012 will be a great year for London’s buy-to-let landlords.
“London’s buy-to-let market remains strong because it offers investors a relatively easy exit, compared to most other UK cities. House prices in London continue to buck the downward trend in property prices seen elsewhere in the country and interest from other investors means there is always a sales opportunity for landlords who want to exit.
“London’s job market is also more buoyant than other parts of the country, which means that buy-to-let properties are far less likely to enter into arrears.
While some homebuyers may be struggling to secure a mortgage, buy-to-let landlords appear to have a plethora of favourable deals available to them, with banks and building societies keen to extend deals to these types of borrowers.
Stephen Ludlow continues: “Banks are more confident lending to buy-to-let investors and are keen to cash in on the buy-to-let boom, particularly in London”
Here are five of the most popular mortgages available through ludlowthompson mortgages:
- 85% max loan to value, with a fixed interest rate of 5.99% and an overall cost for comparison at 6.6% APR
- 80% max loan to value, with a fixed interest rate of 6.19% and an overall cost for comparison at 5.7% APR
- 80% max loan to value, with a discounted tracker interest rate of 4.99% and an overall cost for comparison at 5.7% APR
- 75% max loan to value, with a fixed interest rate of 4.78% and an overall cost for comparison at 6.1% APR
- 65% max loan to value, with a tracker interest rate of 3.79% and an overall cost for comparison at 4.7% APR
We remain bullish that 2012 will be a great year for London’s buy-to-let landlords.
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