Signs good for a buy-to-let mortgage renaissance

10 January 2005
Most buy-to-let property owners, developers and intermediaries have confidence in the market and intend to buy more properties to let.

Increasing numbers of tenants looking to rent, a potential fall in interest rates, and capital appreciation are expected to combine to boost prospects for buy-to-let properties.

The Association of Residential Letting Agents (ARLA) found returns on buy-to-let commercial mortgages stand at 22.4 per cent and Mortgage Trust has said the majority of buy-to-let intermediaries think the market will grow.

"Real investors in the rental market understand both the long term nature of the investment and its resilience in the face of house price movements," said Robert Jordan, president of the ARLA.

Jonathan Cornell at Hamptons Mortgages, added: "We have seen a significant amount of activity from professional landlords either adding to their portfolios or remortgaging them. I would expect this to continue next year."

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