/24-7PressRelease/ - LONDON, UK, March 20, 2008 - Buy-to-let is booming in the UK real estate sector even when the credit crunch has not revealed its real character. The number of leases commencing in January and February 2008 rose 21 per cent over the last year. The credit crunch not only led to a pronounced rise in tenant demand, but the trend is set to continue. The First-time buyers with little or no deposit are finding it virtually impossible to secure high loan-to-value mortgages. The 125 per cent mortgages are now a matter of past. However, frustrated wannabe first-time buyers still need a roof over their heads. Buy-to-let is filling this gap. At the end of 2006, the value of the buy-to-let mortgage market was 95 billion and it now stands at 122 billion.
The demand for home is definitely there. The private rented sector is the out-and-out gainer of the liquidity squeeze. Not only do buyers have less access to credit, but those who can get it have been spooked by the adverse sentiment surrounding house prices. Landlords are now cleaning up. Figures from the Council of Mortgage Lenders (CML) show that there are now more than a million buy-to-let mortgages in Britain and many more deals are about to be settled.
"The beginning of 2008 has seen sizeable growth in the buy-to-let sector. Squeezed loan market and volatile mortgage rates have contributed to an increased demand for rental accommodation," said David Newnes, the managing director of Your Move estate agents.
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