Is there hope of a rise in the property market for buy-to-let purchases?
Paragon Mortgages, the UK’s leading specialist provider of buy-to-let mortgages, reports a rise in buy-to-let lending, which it expects to grow strongly in the second half of the year. If so, will this lead to increased Conveyancing activity in the housing market?
Paragon’s chief executive Nigel Terrington is reported as saying that his company has seen “a pretty robust demand from landlords. ” Research undertaken by the company shows that nearly half of mortgage intermediaries reported an increase in buy-to-let business during the first quarter of this year.
With a shortage of properties available for rent and strong demand from would-be tenants, any rise in activity on the buy-to-let mortgage market should lift the demand for Conveyancing for ‘buy-to-letters’. As the number of reported sales continues to fall, the prospect of more money being available for lending in the buy-to-let sector can only help reverse the trend.
It remains to be seen as to whether this translates into an increase in house sales across the country, and it’s likely that the demand for properties for rent will be highest in the London area. Also buyers will need to see that buy-to-let offers the prospect of a good return on their investment. This may not be apparent if property prices show no sign of rising in the immediate future.
Fridaysmove deliver Cheap Conveyancing, ideal for property purchasers looking to exploit this possible buy-to-let market turnaround.