Press Release Summary: This has been a good news week for many in the buy-to-let industry, with a lot of of those with buy-to-let mortgages either getting a reduction or hoping for one following the base rate cut yesterday
Press Release Body: This has been a good news week for many in the buy-to-let industry, with a lot of of those with buy-to-let mortgages either getting a reduction or hoping for one following the base rate cut yesterday. Those looking for a wider boost to the property market may have been encouraged too.
Of course, there are many who believe more cuts will be needed to ensure the recovery of the property market really takes shape. For example, Lee Watts, managing director of property services firm Kinleigh Folkard & Hayward, said the cut was \"great news\", but added: \"The decision will hopefully provide additional confidence to homebuyers, however further reductions are needed to fully stabilise the market.\"
The Royal Institution of Chartered Surveyors (Rics) was also guarded, noting that rising costs elsewhere could offset the effects of the cut for householders. It said: \"Rics welcomes today\'s move by the Bank of England although further interest rate cuts may be necessary to offset a continuing tightening in the cost of credit which is hitting household finances.\"
Yet for all that, it is the trend - not the size of the cut - that matters, according to Neil Young, chief executive officer of property portfolio management firm Young Group. He stated: \"It\'s the trend of base rate movements that buy-to-let investors should focus on rather than the magnitude of the movements themselves, as any property investment should be held for the medium to long-term.\"
Mr Young added that the factors of affordability and, in come cases, personal preference, were keeping many people off the housing ladder and therefore bolstering the buy-to-let industry, particularly in London.
In mentioning the long-term, Mr Young went on to focus on the recent Association of Residential Lettings Agents survey, which he noted had confirmed that nine out of ten landlords intended to hold onto their portfolios for a decade or longer.
So while things may not be improving so much for owner-occupiers, the future, it appears, could be very bright for buy-to-let landlords. Such an optimistic note was sounded by the National Landlords\' Association (NLA). Chairman David Salisbury said: \"professional UC landlords remain confident abut the market\", adding that recent large rises in rents had been a major factor in this and noting that the NLA\'s own research had found that a quarter of landlords wanted to expand their portfolios \"considerably\" in the next five years.
Moreover, he added, the near future will see the sector perform particularly well.He predicted: \"The chances are that, in the coming months, there will be increasing demand placed on the private-rented sector and well-managed portfolios can only serve to benefit both tenants and landlords alike.\"
With rents rising and demand high, it appears there is more good news for the buy-to-let sector than just yesterday\'s interest rate cut, however welcome that may be.
In today\'s world Property investment is an excellent investment option especially investment in UK