January 26, 2011
Signs of Confidence
Recent enquiries from investor landlords indicate confidence is returning to the local buy-to-let market, says Roy Kitchen, MD of lettings specialist Temples (Nantwich).
“It’s clear that landlords are now feeling more confident in the market, so they’re beginning to look around at their next investment and new investors are also evident.
“Borrowing remains difficult, of course, but landlords who enjoyed the benefits of increased values on their property portfolios in the early / mid years of the last decade are able to raise the necessary capital and benefit from the low interest rates too,” added Roy. “People are still being cautious, it’s now more difficult to predict the property market particularly any short-term growth, but the fact that all our branches saw an increase in enquiries from investor landlords in the last quarter of 2010 is no doubt a good sign that confidence is returning to this area.”
This renewed interest is being fuelled by the improved income returns. Property prices remain comparatively low as do interest rates, while rents are increasing, void periods reducing and from our experience in the ‘quality’ letting sector, the increasing rental demand from professional couples and sharers who are struggling to find the deposit on their first house, is ensuring that our low rent arrears profile continues”.