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The buy-to-let sector is becoming a more attractive option for investors as demand for rented property increases.
That’s the suggestion to emerge from a survey of landlords by LSL Property Services. According to the figures, 49% reckon now is a good time to invest in property for rental, while almost 9 out of 10 intend to maintain or add to their portfolios over the next twelve months.
Mortgage approvals tailed off this spring – but forecasts and figures from lenders give a more upbeat picture looking ahead.
Latest statistics from the Bank of England show that the number of loans approved for house purchase fell in April by a thousand or so, to 45,166. Nevertheless, the total amount of mortgage lending secured against dwellings remained in line with the average for the previous six months, at £11.2 billion.
It’s being suggested that as many as 300,000 hard-pressed homeowners may have converted their mortgages to interest-only in recent years.
FSA data shows that the total number of interest-only borrowers went up by almost 370,000 in the three years after the financial crisis hit in late 2007. According to an analysis by The Daily Telegraph, most are people who have switched – because of financial difficulties and the need to minimize repayments to avoid a default.
Property prices were up in May according to Nationwide – though not by much.
Statistics from the lender show that average prices rose by 0.3% to leave the typical home worth £167,208. The increase comes after a slight fall in April, and contributes to a rise of 0.6% for the quarter – often taken as a more reliable measure.
Figures from the banks present a subdued but steady picture of today’s mortgage market.
According to the BBA (British Bankers’ Association), there was some growth, with net mortgage lending – taking into account repayments – increasing by 2.2% in the year to April.
A prestigious international body has said that UK interest rates should rise soon.
The Organisation for Economic Cooperation and Development (OECD) has urged the Bank of England to follow the example of the European Central Bank, and act to raise rates by the end of the year. Economists fear that inflation may become entrenched, as workers demand higher wages to cope with rising prices.
Homeowners still take an upbeat view of prospects for the property market.
That’s one conclusion to emerge from a survey by estate agent Your Move. According to the research, 8 out of 10 homeowners expect house prices to rise in the next 5 years, with just 11% anticipating a fall.
A leading Bank of England official has stressed that higher interest rates are likely to be necessary to curb inflation.
And that could leave many homeowners needing to take a close look at their mortgage options – and other financial commitments – in the next few months.
Home improvements are in the air – though too late for troubled DIY chain Focus Do It All. Rivals Wickes, more at the no-frills end of the market and catering for the building trade too, are taking over a clutch of stores.
Now’s the time of the year when the thoughts of householders traditionally turn to extensions and refurbishments. But current difficulties in the housing market are giving added impetus to the plans of many of us.
A leading business organisation has highlighted the difficulty of funding small businesses in today’s financial climate.
The Forum of Private Business was presenting its views on the Business Growth Fund. That’s the new £2.5 billion initiative which is part of the deal struck between the government and the major banks last autumn. The fund is aimed at so-called medium sized businesses, turning over between £10million and £100 million.
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