A revival in the numbers of buy to let properties being snapped up could be good news for the property market.
The Council of Mortgage Lenders (CML) has said recently that they expect to see buy to let figures increasing over the course of the year as the demand for rental properties continues to soar.
It is currently a great time for buy to let landlords to purchase because due to the lack of affordable homes, and a tight squeeze on lending, there is a massive demand for private rented accommodation, particularly from first time buyers.
In the last three months of 2010, buy to let lending came to nearly £3 billion. This is because many of the high street banks prefer to lend to a landlord than a first time buyer. While there were only 215 such loans available at the start of 2011, data provider Moneyfacts says there are now 434 on the market.
Many savvy landlords purchase cheap buy to let homes at auction. Often they are repossessed properties which are being sold at a bargain by lenders who need to recoup their money speedily.
There are many advantages to buying a home at auction, most notably the cost of the property, but buyers should be prepared to move fast to complete the purchase once they have agreed to buy.
Usually the transaction needs to be completed within a four-week window. Our team have noticed a definite increase in buy to let properties being purchased via auctions in 2010 and 2011, and we have prepared an auction pack to help buyers with this process.
For more information, visit our dedicated residential conveyancing website, www.5starconveyancing.co.uk or call us on 0844 245 6621.
By residential conveyancing solicitor, Tom Bridge
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