First time home buyer news: Stable market helps buy to let

06-Jun-2006

Current stability in the housing market appears to be aiding the buy to let sector, new research has revealed.

Confidence is high among both consumers and lenders according to data from Moneyfacts, with buy to let providers increasingly lowering the minimum interest cover that they require.

The industry average is now moving towards 125 per cent from 130 per cent, making buy to let products available to a wider audience.

Reports also show that landlords are benefiting from strong tenant demand coming from students, key workers, families on benefit and young professionals.

John Heron, Paragon Mortgages' managing director, explains: "There has been a resurgence of buy to let activity since last autumn, particularly among larger scale and professional investors.

"In all parts of the country, upbeat landlords are buying properties at higher prices, secure in the knowledge that there is good tenant demand out there for the right property in the right place."

While the buy to let sector is opening up to more investors, evidence from Alliance and Leicester also highlights increased confidence in general mortgage borrowing, which has doubled since the start of the year.

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