Around one in ten mortgages are now issued to landlords planning to let out their property, according to new figures.
Research conducted by the Council for Mortgage Lenders (CML) reveals that more than £5 billion worth of mortgages were issued to landlords in Q2 2013, the highest quarterly sum since the start of the financial crisis.
This rise has been attributed both to a rise in the average yields of rental properties and the improved buy-to-let lending conditions being offered by Britain’s banks. In fact, dailymail.co.uk reports that there was a 24 per cent quarterly rise in the amount of remortgaging deals being completed, as landlords look to take advantage of better deals on the market.
With no end to this rental bubble in sight, it would appear that the buy-to-let market is something that every trainee estate agent will need to know like the back of their hand.
In an interview with guardian.co.uk, IHS Global Insight chief economist Howard Archer predicted that rental properties would be a safe haven for investors for some time.
He explained: “First, people can borrow with greater certainty that they will not face higher interest rates for an extended period. Second, people know savings rates are not going to rise from extremely low levels for a long time, so it will encourage them to find better ways of making returns from their money.”