lettings appletons on 11 Sep 2007 12:43 pm
Record buy-to-let market growth
According to the Royal Institution of Chartered Surveyors (RICS), the recent increases in the interest rates have not slowed down the buy-to-let market.
The RICS indicates that the slowing housing market and high interest rates are pushing the first-time buyers to stay rented accommodation. This has resulted in the fastest rent rises.
New landlord instructions, which is quoted as an indicator of buy-to-let activity, increased significantly in the second quarter of 2007 too.
Rent-flation
During the recent years, the number of buy-to-let mortgages has almost doubled. 1 in 10 mortgages are now for investment properties.
The growing influence of buy-to-let investors, with more financial muscle than the typical first-time buyer, helps explain why house prices in the UK are still rising briskly, despite the Bank of England having imposed five rises in interest rates since the summer of 2006.On Monday, BBC news reported that the house price inflation picked up again; rising from 12.1% to 12.4%, its highest since March 2005.
