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Subscribe to rss feedKnight Knox International: now is the best time to buy rental property
22nd February 2012
Demand for landlord emergency cover and other insurance products for buy-to-let property owners could increase as investment in rented accommodation becomes ever more attractive.
With rents rising and property prices struggling due to a lack of available finance, now is a good time to invest in buy-to-let, claims estate agent Knight Knox International.
"At the moment, I would say that it is the best time to buy. With banks not lending much, those that have got the cash available can take advantage," said Iqbal Hussain, property consultant at the firm.
"Prices are down, people can't sell their houses or sell investments to the investors, so for anyone who has got cash at the moment, it is a good time to purchase anything."
His comments follow a recent report from Countrywide, which revealed that demand for rental accommodation remains at a record high in the UK and has increased by 10.8 per cent annually across the country.
Furthermore, landlords are benefiting from growing access to lending from mortgage companies, making investing in new buy-to-let properties easier and more affordable.
Speaking at the recent Landlord & Letting Show in Birmingham, Gavin Elley, relationship manager at Mortgages for Business, predicted that a growing number of lenders will increase the amount of buy-to-let business they conduct over the coming year.
"What lenders have worked out is that buy-to-let lending actually isn't such a bad thing," he said.
"It has got the same risk rating as residential mortgages but it is actually an easier transaction. You have got the covenant of the borrower and you have also got the covenant of the tenant in there as well, so in terms of risk it is actually better for them."
Recent figures from the Council of Mortgage Lenders revealed that there were 84,000 more mortgages extended to investors in buy-to-let properties last year than in 2010.
Posted by Noah Collins
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