Dexters are continuing to see strong growth in the buy-to-let market. One of the key reasons behind the investor market remaining so strong is the increasing popularity of renting in London. Renting allows for hassle-free living, and, with a mature professional renter now the norm, we are finding that tenancy terms are becoming longer and enquiries are more likely to be targeted to good quality professional agencies like ourselves.
The consistent popularity of London as a place to make a home means that demand is always strong against the supply of properties available, with this ratio set to increase yet further in the coming decades. We expect an additional one million households in the UK to be renting by 2021, with the highest demand in London itself.
The number of buy-to-let mortgages available is falling as lenders respond to new regulation and a fall in demand from private landlords, who face a swathe of new taxes. The number of loans available has fallen 5pc in the past four weeks, the steepest decline since the banking crisis, according to Moneyfacts. It said that in total the number of available mortgages had fallen from 1,482 to 1,408, the largest drop in numerical terms since March 2009, when lenders drew back from the sector and concentrated instead on mainstream homeowner business. Many lenders have raised the amount of rent a buyer must take in each month relative to their mortgage costs. Previously the standard was 125pc but many lenders have now raised this to 135pc or 145pc, meaning that landlords must either borrow less or charge more rent to qualify.