The housing market remains rosy for those looking to buy to let

It is bad news for many involved in the housing market, but despite first-time buyers struggling to get on the property ladder, the news is much better for people who are in the buy to let situation. Buy to let is something that declined significantly during the economic downturn however, it is something that has started to increase greatly again in the last year. Unfortunately, this is bad news for people who are looking to buy a home for the first time as it is squeezing them out of the market.

In the first three months of this year it became clear that the number of landlords buying to let greatly increased. It is estimated by the Council of Mortgage Lenders, that the number of buy to let mortgages issued rose by around 30 percent.

The CML stated that over 30,000 loans were made in the first quarter of the year, which is a significant increase on the same figure for last year. In contrast, in April, the number of mortgages being given to people for the first time greatly decreased and has reached its lowest level for nine months this month.

Experts in the property market have said that mortgage lenders are becoming increasingly hesitant to loan to first-time buyers as they require a large amount of capital for a relatively small deposit. Unfortunately, many first-time buyers are unable to afford large deposits so they are either unable to secure a mortgage, or get an unfavourable rates.

The Chief Executive of Dragonfly Property Finance is Jonathan Samuels and he has commented, “We saw a significant increase in the number of applications for loans for people looking to buy properties in order to let them out. We fully expect this trend to continue for several months to come, buy to let investors are back.”