First time home buyer news: Buy-to-let recovering

26-May-2006

The buy-to-let market has picked up in the first half of the year which is good news for first-time buyers who cannot afford to get a foot on the first rung of the property ladder.

Figures from UCB Home Loans reveal that investors are benefiting from rising rents, increased tenant demand and rising house prices.

Mortgage lender Paragon Mortgages also revealed that landlords are achieving gross yields of between four and seven per cent, with the average yield being 6.3 per cent.

"Mid 2004 to mid-2005 was the first year in which buy-to-let purchases ever decreased, but there was a sudden leap of 40 per cent in the number of new buy-to-let mortgages in the second half of last year," comments Keith Astill at UCB.

"This momentum has carried over into 2006, with rising rents and increasing numbers of tenants making the market attractive to landlords," he continued.

Some of the buy-to-let hotspots in the UK include Swansea, which is currently undergoing regeneration, as well as Chelmsford and Colchester.

However, although confidence among landlords is currently strong, those considering in investing in property for the first-time are advised to do so with caution.

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