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Record rents ease buy to let borrowing restrictions By Simon Thompson |
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Record rents are letting landlords collar higher loan to value deals from buy to let lenders.
Brokers TMBC claim more than half of loans processed in the second quarter were for loan-to-values of 70% plus as lenders accepted higher rents would support higher borrowing levels.
Favourite mortgage rate options for property investors were fixed deals at an average 4.82% and trackers at 4.20%.
Rising rents and sluggish house price changes have led to higher yields. The TBMC index shows average buy to let yields across the UK for the second quarter were 6.25%, but varied considerably according to location, property type and who occupied the home.
Buy to let hot spots are London, Bristol, Coventry, Chester, Southampton, Cardiff and Sheffield, say TBMC.
Terraced houses offer the biggest average rental yields (6.65%), followed by flats (6.06%).
Students generate the highest yields (7.52%) because student properties are often let out on a room-by-room basis.
The next highest yields are provided by families (6.32%) and professionals (5.89%).
Students in terraced houses produce the greatest yield of all (7.77%).
A snapshot of the index for the second quarter shows:
• Average loan size: £138,525 - up from £136,359 in the first quarter
• Average loan-to-value: 67.17% - up from 66.35%
• Average chosen fixed rate: 4.82% - down from 5.0%
• Average chosen tracker rate: 4.02% - down from 4.2%
Andy Young, chief executive of TBMC, said: “The buy-to-let mortgage market has continued to develop during the second quarter with a greater number of products available to landlords. During the period, the number of mortgage schemes grew by 25% compared with the previous quarter.
“Average loan sizes also increased mainly due to the greater number of lenders offering higher loan-to-value mortgages and the availability of finance for houses in multiple occupation (HMOs), which tend to be higher value properties.”
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Landlords warned - prepare for more regulation |
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Landlords in England are being warned that they should prepare for more regulation after the government published a consultation.
The warning comes from Tim Miles who is a partner at law firm Clarke Willmott.
He says that the Government is cons |
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Research reveals that 2017’s rents fell in real terms |
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The rents being paid to landlords in all parts of the UK fell in real terms during 2017, research suggests.
The findings from HomeLet reveal that rents in November rose by 0.7%.
That's the 11th straight month that rent increases have fallen beh |
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Rents for the UK’s rental properties rise by 2.1% |
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The average rent for a buy to let property grew by 2.1% in the year to September, an index has revealed.
The figures from HomeLet show that the average rent now being paid is £927 every month.
For landlords in London, rents rose by 1.9% o |
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Landlords start exiting the buy to let sector |
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One leading firm of letting agents is warning that buy to let investors are beginning to exit the sector.
The warning comes from Belvoir who say that while the numbers of landlords leaving is not huge, there is a trend appearing.
The firm's chi |
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Landlord confidence takes a knock |
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Despite the prospect of high yields and profitability, a survey has revealed the landlord confidence around the UK has fallen.
The findings from BM Solutions looked at all the key indicators for the second quarter of 2017.
They say that the lev |
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Landlords 'don't know what tenants want' |
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Landlords in the private rental sector are out of touch with their tenant’s wants and needs, according to new research.
The findings from an online letting agent revealed that tenants are clear most often about what they want and t |
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