Buy To Let Updated:
Despite a continued downturn in the residential housing market, high demand for rental accommodation has seen a surge in activity in the buy-to-let mortgage sector.
Buy-to-let was the only area of the mortgage market not to experience a fall in activity, with the number of valuations on buy-to-let properties over the past year increasing by 31%, according to Connells Survey & Valuation.
Strict lending criteria and a lack of affordable, small deposit mortgages bought about by the credit crisis has forced many would-be buyers into rented properties. High demand for rental properties is also thought to have signalled a rise in monthly rental payments, impacting on prospective buyers' ability to save for a deposit.
Whilst this isn't great news for the residential mortgage market, particularly frustrated first-time buyers, landlords will be rubbing their hands at the prospect of reaping healthy yields.
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