It is reported to be a ‘golden time’ for borrowers with interest rates at their lowest for years making it an opportune time to start or expand your buy-to-let property portfolio. Furthermore, the outlook for property price growth is strong and outside of London rental yields are at a record high.
Here’s what we’ve seen in the news this week:
London rent prices hit five year low while every other regions sees rises: Excluding London, average monthly asking rents across the country are at a record high of £982 per month, up 4.2% since March 2020 – the highest annual rise since 2015. London is the only UK region where rents are lower today than they were five years ago, according to recent Rightmove data. Rents across almost two-thirds of the capital’s districts are lower now than they were in March 2016, meaning that the average London rent has fallen by 2.3%. Read more.
Mortgage bonus for landlords expanding rental portfolios: There’s good news for landlords considering investing or refinancing in the buy to let sector as interest rates are beginning to drop. Respected independent mortgage market monitor Moneyfacts reports that since the start of May, the average BTL two and five-year fixed rates for all loan-to-values have fallen by 0.04 and 0.05 per cent respectively, and since March this year by 0.10 and 0.11 per cent. Read more.
Value of UK house sales forecast to leap 46% this year as boom continues: The total value of homes sold in the UK is expected to reach £461bn this year, a jump of 46% on 2020, indicating the current housing market boom is likely to continue, according to a new prediction. The property website Zoopla said its projections indicated the property market in 2021 was on course to be the busiest for 14 years. Read more.
Nationwide predicts UK house prices will continue to rise: The UK’s second largest mortgage lender, Nationwide Building Society, said house prices would continue to rise this year beyond the stamp duty holiday but warned higher costs could make it harder for first-time buyers to get on the property ladder. Read more.