By Steve Roulstone
As I said in my last blog and with good timing, news is beginning to spread of a confidence in the rental market and surely led by demand, an increase in Buy to Let products, which will enable growth again next year as Landlords seek to supply property to an increasing demand for Rental housing.
Drive the market
I do not think we will ever see the type of mortgages available before the property crash, and most would say for the right reasons, but there is no doubt that Landlords buying for a readymade market, where rents and demand are both increasing, could give timely assistance to House sales. Therefore Societies need to have the confidence that products they make available will work. It is there job to place those products at the right level to attract business but hopefully they can also see the demand which will surely increase after both the winter season, which historically has a slowing effect on the market anyway as well as this current spell of bad winter weather.
Spring is round the corner.
So by the time Easter is upon us, again historically the time that the property market increases in volume (take note BBC!) in three months time, the markets and financial houses should be able to recognise the need and start to release the products. This is also the same time that Landlords start to look at increasing their property portfolio as I know only too well from the increased level of ‘Landlord shopping’ our offices are asked to carry out. So historically and with a market as strong as the rental sector is at present the demand and percentage of rental property looks to continue to grow in strength and size.
Walk first!
So as my own group will be ready I believe what we need now is growing signs of confidence from the markets and it will be the mortgage products that confirms this confidence if they are made available (as seen recently with short term release or special offers made available for limited periods) then others will follow suit, whether they be Agents, Landlords, Mortgage brokers or Providers, the Buy to Let mortgage could soon be the vehicle by which the property market starts to recover. Nobody wants this to be without due consideration and that means careful product pricing and placement, but that is exactly what I both hope for and expect.
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