House price figures reflect 'golden period' for landlords
The latest house price figures from the Land Registry are a sign that now is a "golden period" to invest in buy-to-let properties, it has been claimed.
According to the organisation, prices across England and Wales fell to an average of £161,479 in June, compared to £161,823 in May, while falling 2.5 per cent year-on-year.
Furthermore, from January to April 2011, the number of housing transactions averaged 42,733 per month, down from 45,509 in the same period last year.
But, while this suggests stagnation in the owner-occupier market, it could spell good news for investors in buy-to-let properties as an increasing number of people turn to rented accommodation instead.
Furthermore, while lending for owner-occupiers remained constrained, mortgage availability for buy-to-let properties is more readily available.
Commenting on the latest house price figures, David Whittaker, managing director of Mortgages for Business, said that they "prove now is a golden period for landlords".
"Property prices are stagnating but mortgage availability remains tight for owner-occupiers and demand for rental property is causing rents to soar. The yields available to landlords on buy-to-let property are very healthy indeed and offer much better rates of return compared with other investment or savings vehicles.
"We expect prices to remain flat for the rest of the year so landlords will be able to bolster their portfolios further over the next five months, taking advantage of the rental market and providing a safety net for those having to rely on the private rental sector for accommodation."
Meanwhile, The Mortgage Works, NatWest and Skipton Building Society have all cut rates on their buy-to-let products this month.
In addition, a recent study by Moneyfacts revealed that their are now 505 different buy-to-let mortgage products on the market - the highest level since September 2008.
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