Despite recent turmoil, Buy to Let investor confidence is high

Although some reports show that the Buy to Let mortgage market is slowing as a result of recent turmoil, The Landlord Association's confidence report shows that investors are still buying and not selling.

The Landlord Association has a base of over 16,000 members and Dean Woodman-Evans, Membership Director said:

"The fundamentals of buy to let remain extremely sound. Average rental yields are up and demand far outweighs supply across the whole of the UK."

Even though interest rates look likely to continue to rise, the Buy to Let market is still strong. The Council of Mortgage Lenders (CML) said that BTL lending and home extension remortgages hit an all time high back in July totalling £7.8 Billion.

With the recent trouble in the world financial markets, interest rates are rising and this puts pressure on the first time buyer market. This shows an additional requirement for rental property to cater for this gap in the first time buyer market. The rental market will respond to this requirement and the trend for more rental properties by investors will no doubt continue. Landlord's will no doubt have to make their own increases to rental rates, but this is understandable if interest rates continue to rise.

The buy to let mortgage market is a complex market and one difficult to predict, with the scale of investors ranging from small 1-2 property investors through to large portfolio holders with hundreds of properties. The previous and current trends show that BTL is still very strong.

The Council of Mortgage Lenders News and Views 11/09/2007
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Keep posted for more information on the Buy to Let market.