2
Jan
Buy to let 'set for continued growth in 2008'
The buy to let sector will see further growth next year as tenant
demand rises, it has been predicted.
According to data from Paragon Mortgages, the buy to let market is
set to expand by three per cent next year.
This will take it from the 12 per cent of all new mortgages
approved in 2007 to 15 per cent, managing director of Paragon
Mortgages John Heron claims.
Meanwhile, yields will rise to around 6.5 per cent, as fewer people
opt to buy homes in the face of economic uncertainty, Mr Heron
said.
"We expect 2008 to be a really strong year for rental demand,
presenting plenty of opportunities for established buy-to-let
landlords as well as well briefed new entrants to the market.
"The key factor will be a lower level of confidence elsewhere in
the market, which will drive tenant demand higher while house
prices - the cost of a landlord’s raw material - will at best
be flat," he explained.
