Cheaper buy-to-let mortgages equal better cash flow and bigger profits
Property investors who worry about cash flow have received another boost recently. In an already competitive buy-to-let mortgage market, Leeds Building Society has announced a refreshed 70% loan-to-value range. It claims its new two-year fixed rate deal is the lowest on the buy-to-let market. It could signal a price war, with other lenders cutting rates to attract buy-to-let financing business. Great news for property investors.
Total returns continue to make property investment the number one asset
Recent research from two respected sources concludes that buy-to-let property investors can look forward to a bright future. Competition from tenants is increasing, rents are rising, and landlords selling in 2017 made an average of 69% total return after just 8.5 years of ownership. And it looks like there is better yet to come.
Proof positive that the potential for UK property investment is growing
This time last year, house prices in UK cities were rising at an average of 3.7% annually. The latest Hometrack analysis shows that this rate of price growth has increased by a third, to 5.5% over the last year.
The latest property news reads well for investors. Property price growth has stabilised, as have average rental yields, while rental prices are rising. No one is now forecasting a Brexit-induced crash in property price. The news flow indicates that the squeeze on buy-to-let profits may be coming to an end.
Identifying the best places to invest in property UK
The latest house price index – this one from Hometrack – confirms what readers of the Gladfish blog and newsletter have known for some time: London and the South have been usurped by northern cities for house price growth. In this article, we’ll look at how property prices are faring in the UK’s key cities, and shed light on why we believe the Midlands and the North of England could outperform the rest of the UK in the months and years to come.