The current propensity for properties going to buyers with an interest in landlord insurance seems set to continue as lenders continue to recognise buy-to-let investors as the safest bet in terms of mortgage risk.
New breed enters the market
As young couples continue to struggle to raise a deposit that will enable them to purchase a property, residential landlords are finding more and better deals available to them all the time, including property insurance. The current financial flux of low interest rates, lack of lending from the banks and a seemingly insatiable demand for tenanted accommodation is attracting a new kind of landlord.
Buy-to-let is an interesting option
The luckier members of society who find themselves in jobs that are not threatened by the current austerity measures imposed by the Government find themselves in a position where they are accruing money but have few options to invest the cash in a market that will give them a good return on their investment. Twelve months ago investing in the property market would have been almost impossible, the financial situation and lack of buy-to-let mortgages would have seen to that, but now, all of a sudden the property market is awash with buy-to-let deals that get better day by day. Twelve months ago investors would have been facing a 50% deposit; today 25% deposits with the right financial background are becoming common place.
Education fees replacing pension plans
The identity of the modern landlord is changing quickly too. Today the landlord with just 1 or 2 properties in his/her portfolio is likely to be a middle aged professional couple confident of their own future but not that of their children. The tenants paying rent into the bank accounts of this type of landlord will not be building up a retirement pension for their landlords but more likely contributing to school and university fees for the landlord’s offspring.
Sector changing quickly
The dynamics of the housing sector in the UK are changing faster than ever before. Those with a finger on the pulse of the market and the wherewithal to back their judgement could find the fragility of the present financial situation gives them a rock solid investment for the future of their own family.