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TODAY'S OTHER NEWS

Almost one in ten people want to invest in buy-to-let property

With savers receiving appalling returns from banks and building societies, many people are unsurprising still interested in investing in buy-to-let as a means of supplementing their income despite recent tax changes, according to new research.

Having long provided bumper double-digit returns for investors, investment in buy-to-let has waned of late as a result of higher stamp duty costs, the phasing out of mortgage interest relief, the scrapping of the ‘wear and tear’ allowance, not to mention significantly tougher mortgage lending conditions.

But with buy-to-let continuing to outperform many other major asset classes, and with population pressures expected to continue to drive demand, rental prices look set to rise further, and that may explain why so many people have shown an interest in taking out a buy-to-let so far this.

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New research by Opinium Research, conducted on behalf of Sainsbury’s Bank Mortgages, indicates that 9% of UK adults have made an enquiry about taking out a buy-to-Let mortgage in 2018.

Of those taking out or considering a BTL mortgage, 35% said a change in income had inspired them to do so, while 29% remain encouraged by the current opportunities to enter the BTL market.

A quarter - 25% - of the 2,004 UK adults surveyed said that they were considering a BTL mortgage after receiving inheritance and many here may have found themselves “accidental landlords”.

When it comes to purchasing a property, over half - 51% - of potential landlords have considered buying a house, with 46% having considered purchasing new builds prior to this year.

Some 46% have also considered purchasing a flat, with 44% having considered buying new build flats.

Sainsbury’s Bank recently extended its mortgage range with the launch of new BTL products with a view to support to accidental landlords who are either looking to purchase or remortgage.

The various products are available across two- and five-year fixed terms, with lending is available up to £1m with a 60% loan-to-value (LTV), and £500,000 up to 75% LTV.

David Buxton, head of banking at Sainsbury’s Bank, said: “With demand for rental properties showing no signs of slowing down, we’re delighted to be able to help landlords by offering competitive mortgages and advice to help them best manage their investments.”

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    long term view and don't run before you can walk, certainly worked well for me no regrets

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    Don't believe it

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