Figures compiled for the Sunday Times based on a survey of data from the Council of Mortgage Lenders show that 29,000 landlords entered the buy-to-let market for the first time in 2012, which is an increase of 19% on 2011. I sometimes wonder how they compile these figures and whether all the data is entirely accurate and those individuals from which it is gathered are wholly honest in the answers that they provide! Either way, the report showed that gross yields in Wales were 5.3%, an increase of 4.2% over the previous 12 months. According to my maths 4.2% of 5.3% isn’t a lot, but looks very encouraging when written down as bald figures. It is understandable that cash-rich investors who are achieving an average of 1.82% on their ISA’s choose to view buy-to-let mortgages as far more attractive propositions. However, (and there always is an ‘however’), whilst all estate agents will surely welcome an increase in landlord activity, it is worth pointing out that the buy-to-let market is not an easy fix. LSL Property Services who own Your Move Estate Agents report that 8.5% of all rent was in arrears. To get your new 5.3% buy-to-let investor be prepared to take a long-term view and the prospect of having to deal with plenty of hassle.
http://www.cheshireandco.co.uk/wp-content/uploads/cheshire-logo269111.png 0 0 Gareth Cheshire http://www.cheshireandco.co.uk/wp-content/uploads/cheshire-logo269111.png Gareth Cheshire2013-04-24 08:12:492013-04-24 08:12:49New Buy-to-Let Boom?