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New high for buy-to-let mortgages

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This quarter has seen the highest amount of buy-to-let mortgages in 5 years according to the Council of Mortgage Lenders, with 40,000 approved compared to 33,000 in the last quarter.  But what does this mean for landlords looking to grow their existing portfolio, and for those first time buyers looking to move out of their rented accommodation?  Sarah Brooks, Residential Conveyancing Partner, looks at the impact this increase has for both parties.

“From a landlords perspective, now is a good time to invest in rental properties as demand is high, as is the availability of mortgages,” begins Sarah.  “Not only could this bring high return on investment for landlords at a time when return on savings is low, but this also opens up opportunities for them to re-mortgage existing properties and therefore boost the sector in general.”

However, the increase in buy-to-let mortgages could make it even harder for first time buyers.  “As landlords with existing properties are more likely to be approved for a mortgage for a buy-to-let purpose, this could mean that properties will be bought by them, and not first time buyers.  This situation causes a vicious circle for first time buyers, as they have to stay in rented accommodation for longer, causing the demand for rental property to increase, and with it the opportunity for landlords to invest in more buy-to-let properties.  The barrier for first time buyers to enter the property market has been alleviated slightly with the governments Help to Buy scheme which has already had huge success, with it being recently announced that this will be extended into 2014.

“Even though landlords may wish to jump at the opportunity to expand their portfolio, we would always advise to research and seek independent advice.  Each property will be different, and so will need a different approach.  While demand is high, there are still a high number of poor quality properties vacant.  Landlords need to get the balance right and consider the true value of their property on offer.  People are still struggling financially and so landlords need to keep their rents realistic so that they don’t have a property sitting empty,” concludes Sarah.

Whether you’re a landlord looking to purchase a buy-to-let property, or you’re looking to move home, our Conveyancing Team can help.  Call one of our three teams on 01329 222097 for Fareham, 02392 776549 for Portsmouth or 02380 717439 for Southampton, email them at or visit the website


This is for information purposes only and is no substitute for, and should not be interpreted as, legal advice.  All content was correct at the time of publishing and we cannot be held responsible for any changes that may invalidate this article.