Landlords have expansion plans for 2012

Thursday, 19 July 2012 9:57 AM

Six in every ten property investors plan to expand their portfolio further by the end of the year.
According to Mortgages for Business many landlords have expansion plans underway with 84 per cent of this group wanting to purchase another residential property.
This means by Christmas the supply of rentals should be on the up.

“Landlord appetite for buying residential property is high,” David Whittaker, managing director at Mortgages for Business said.
“This will support the private rented sector and ease the strain on would be renters chasing too few properties.”

Of the 159 investors surveyed only three per cent were planning to reduce their portfolios during the next six months.
This is down from six per cent last quarter and suggests the market is definitely picking up for landlords.
But it is not all good news with just more than half of investors who are planning to expand needing to refinance their existing properties.
About 20 per cent are likely to struggle to secure finance because of a lack of equity due to the dearth of high loan-to-value mortgages in the market.
As of June this year, there were only four 85 per cent loan-to-value mortgages available, leaving little choice for those struggling to find the large deposit sum.
 

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