Strong tenant demand could mean more people looking for buy to let mortgages in the new year
According to the latest figures contained within Paragon Mortgages Buy-to-Let index, the annual return on buy to let property over the past 12 months is as high as 25.1% in some places, (this is a combination of capital gain and rental income). This percentage return, coupled with the strong demand for rental accommodation is something no potential property investor can ignore and will perhaps spark a rush to find the best buy to let mortgages in the marketplace early in the new year.
Rising rents mean gloom for tenants but joy for landlords
Over the past twelve months, Paragon estimate rents have risen by an average of 6.9% standing at an average of £10,718. This is not great for tenants, especially those who are fed up with renting and want to move on to the property ladder. Coupled with the gloom of not being able to afford to buy a house, now they have to look forward to landlords raising the rents, especially as more and more people find it hard to keep up with mortgage payments after multiple interest rate raises over the past 12 months.
Mercy Mr Rigby please…
Perhaps UK Landlords will have mercy on those who rent and keep monthly rents down. Perhaps they will have found a very very good buy let mortgage deal and so generously decide they don’t have to bleed their tenants dry. You never know, it could happen, but I wouldn’t hold my breath, at least not for too long.