The Growth of Buy to Let in the UK

Rental values are currently strong and look set to continue this way with growing demand.


Buy to let borrowing in the UK has increased by 20% year on year in the first three months of 2015, outstripping residential lending which was up by only 1.6%.
 
The amount of lending for the first quarter amounted to a cool £36 billion, a year on year increase of more than 5%.
 
The average value of each mortgage was £177,000 for residential compared to £170,700 in the final quarter of 2014, and £151,033 for buy to let compared to £145,017 in the previous quarter.
 
March was the biggest month for mortgage brokers since the crash of 2008. Lending was up 23% on February 2015, reaching an enormous £14 billion. The market saw improvement across the whole of the UK, with only areas of Scotland reporting negative growth during the quarter.
 
With low interest rates on deposit accounts, more and more of peoples savings are moving into the buy to let market to receive higher returns on savings and demand exceeding supply in the housing market, currently there is only one way for house prices and that is up. In addition to this with many first time buyers not being able to raise the deposit or have the necessary income multiples to buy, the rental market is constantly expanding.
 
Rental values are currently strong and look set to continue this way with growing demand.
 
For those without savings there are other possibilities to fund a buy to let portfolio. The growth in secured loans and bridging loans, provides a cost effective way to get the deposits you need to start your buy to let portfolio.
 
Secured loans are now an attractive way to fund, with lower interest rates and no penalties for early redemption.
 
If you want to get on the buy to let ladder call AtPledge today on 01604 901101, our property team will be very happy to assist you. Alternatively contact us online.