Buy to let market still strong
05/01/2007 - Inadequate savings a reason for its popularity
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Landlords are looking to property by way of propping up an uncertain financial future. The recent trend in buying properties on buy to let mortgages with little or no intention of letting them out has also fuelled the market. New developments are attracting buyers who would rather leave their properties empty than have tenants using the appliances and causing wear and tear. Buyers are hoping to reap the benefits of a rising property market and plan to sell at a profit.
A recent survey showed that eight out of ten mortgage brokers expect to see an increase in buy to lets during the following year. The Council of Mortgage Lenders say that 152,500 mortgages were granted in the first six months of 2006 which was seven times as much as the figure reached six years ago and around 14 per cent of all mortgages are now buy to lets.
