The BTL market will boom this year despite the credit crunch, according to Assetz…
Stuart Law, Chief Executive of Assetz commented: “It is difficult to see anything other than another successful year ahead for UK buy-to-let investors in 2008, who are positioned to benefit as the reducing number of homebuyers offers the potential for excellent returns from increased rental demand, and as the Bank of England reduces mortgage rates.
“Huge numbers of people are favouring rented accommodation in the current climate, as they wait to gain a clearer perspective on the future of the housing market. The rental market continues to favour one and two-bedroom homes, which have been the most common property for landlords over recent years.
Property shortage ‘serious’
Mr Law continued: “When interest rates do inevitably fall, property investors will benefit from a significant reduction in borrowing costs as many landlords are on base rate tracker mortgages and can expect excellent returns on investment as interest rates drop and rents rise.
“The current shortage of property in the
“Although inflation for 2007 as a whole finished largely in line with the Bank’s target of 2.0% (2.1%), the threat of an economic slowdown and current retail pressures on the high street are fuelling the need for a cut in interest rates next month.