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Market Uncertainty
The property industry is bracing itself for the effects
on the economy and the housing market following the September 11th tragedy in
the US.
According to Ian Perry, national spokesman for the Royal Institution of Chartered
Surveyors, "The attack on the United States and the subsequent international
uncertainty will undoubtedly have an effect on the UK economy, and with it the
housing market.
London agents have reported the biggest impact in trading conditions with many
property sales transactions coming to a standstill and new rentals running at
a significantly slower rate than comparable periods in previous years. According
to Estates Gazette and Robert Orr-Ewing of Knight Frank's letting department,
rents are poised to fall in the most exclusive London suburbs - perhaps by as
much as 10%.
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Buy-to-Let boom
Residential investment is becoming ever more popular according
to recent surveys.
Latest figures from the Council of Mortgage Lenders (CML) show that the total
value of mortgages on property to let has risen by more than 60% in the last 12
months, to more than £10 billion. The figures show that 27,900 buy-to-let
(BTL) loans were advanced in the first six months of 2001, 45% more than in the
preceding six months.
The low cost of servicing mortgaging debt and the uncertain outlook for the stock
market are leading more people to consider the potential of Buy-to-Let, which
can produce a good income and attractive capital growth over the long term. An
estimated 50 lenders now offer BTL mortgages. This has helped ensure that a selection
of competitively priced BTL loan options has become available to borrowers.
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