Buy to let Property Market
It has been estimated that by the year 2016 the buy to let property market is expected grow by 41%. This figure is based on a research conducted by the lender Alliance and Leicester. The research also picks up on the point of a rise in demand for rented property by students and single people.
The research report that was issued states that areas such as London and the south east form Britain's buy to let property 'hub'. In the report, more than two thirds of the landlords that were questioned wee employed with a full-time job, in addition to owing a property to rent.
The lending interests rates influence significantly impact the buy to let property market. A high enough interest rates can make the buy to let property market an unviable proposition for some investors. The interest rates that are set by the Bank of England but are still influenced by changes in Government policy and a number of factors including inflation, public spending, the strength of the economy, the outlook of the economy and so many other factors. . It is virtually impossible to forecast interest rate levels over the life of your mortgage. It is, however, a good idea to have good leeway in your profit margins to account for any interest rate rise of several percentage points. Another option to consider is to have your interest rates fixed over a number of years to ensure that you can plan around your mortgage effectively.
The sustained growth in house prices has continued unabated for more than a decade and despite warnings of a slowdown, this has yet to materialise. Although things are beginning to cool down, you it is wise to keep a close eye on the house prices by using various resources available on the Internet.