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Buy-to-let grows despite gloomy mortgage market

Buy-to-let grows despite gloomy mortgage market

Category: Buy To Let

Updated: 07/08/2012
First Published: 07/08/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

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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