Even small investors are beginning to realise that the buy-to-let market offers one of the most reliable prospects of secure, long-term growth.

Why invest in a buy-to-let property?

The latest figures show that thousands of people have recently entered the buy-to-let market for the very first time.
To them, there’s never been a better time to buy.

  • Dramatic losses on the stock market and low rates of interest have left millions worried if they will have enough left for their retirement.
  • Pensions have taken a battering because most of them are linked to share prices, which are lower now than they were in 1999.  Bank stocks, once considered the safest of havens, have been decimated by the banking crisis.

It is fair to say that many investors were concerned that falling property prices could seriously damage the buy-to-let market.  There is no doubt buy-to-let has endured a difficult period since 2007, resulting in losses for many. But perhaps the shake-out removed from the market those who had recklessly invested in properties without ever having viewed them. Global economic turmoil has now forced people to review their financial options and see, once more, that the buy-to-let market holds enormous possibilities.

Ironically, it is feasible the drop in property prices which has fuelled the demand for rental properties. Many homeowners would rather ride out the recession, rather than sell below what they consider to be a fair price.  This has, in turn, created a shortage of affordable homes. And with banks less likely to lend to first time buyers, young couples in particular now find they have no option but to rent.

On top of that, immigration is still high from EU countries, record numbers of marriages are breaking down and the UK population is continuing to grow apace. All this is stimulating the buy-to-let market.

According to the Council of Mortgage Lenders, buy-to-let mortgage lending rose 29 per cent in the three months to June 2011, compared to the same period in 2010. The 32,000 buy-to-let loans were worth a staggering £3.5 billion.

Paragon, the buy-to-let specialist lender said that 5,700 investors entered the buy-to-let market in the second quarter of 2011, the highest number of new landlords since the credit crunch began.

In recognition of this explosion in interest, lenders big and small have begun competing ferociously for the mortgage business, sparking a drop in interest rates for buy-to-let mortgages.

Melanie Bien, of brokers Private Finance, said:”Buy-to-let deals are likely to become increasingly competitive as more lenders look to capitalise on demand from landlords.”

How buy-to-let works

Buy to Let is when an investor buys a property which is not their main residence and rents it out.  Hopefully, rental income exceeds the mortgage payment, and you can look forward to the property appreciating in value over time.

With interest rates being low, linked to the right mortgage deal, there is now a greater chance that your income will exceed the mortgage payment, creating a surplus.

It’s not a guaranteed money-maker.  New landlords will have a number of costs to factor into their calculations;

  • legal fees
  • stamp duty
  • mortgage arrangement fees

There’s also the need to ensure the property is fit and habitable for the tenant so you must take decorating costs into account, as well as furnishing, carpets and appliances.

You don’t even have to manage the property if you don’t want to – a management agent will charge you a monthly percentage of the rent to take care of day-to-day affairs.

Choosing a MoveQuick property for your investment?

At Move Quick, all our properties carry up-to-date valuations to help you make your calculations and predict your expected level of income. It cannot be stressed how vital it is to have a regulated valuation.


Related websites:




Get in touch now

We will only use your details to send you information about Move Quick property investment opportunities. See our privacy policy for more detail.

Your details