Rising Rents Boost for Buy to Let 

According to the latest available data from the Office for Nationals Statistics (ONS), rents paid by tenants increased by 4% in the 12 months to November 2022 and 4.2% when excluding London.

This surpasses a 3.8% rise in the 12 months to October and is the most significant annual increase since the ONS started tracking in January 2016.

Zoopla’s latest rental market report found that “the largest UK cities are registering the fastest growth rates”, with London leading the way with 17% rental inflation (October 2022) the report further states that, there seems to be no sign of a slowdown due to chronic supply/demand mismatch and that demand for one-bed flats is growing as renters seek better value.

Opportunities for property investors
Some economists are now predicting a slight softening to house prices across the UK. This coupled with rising rents and lenders continuing to make reduction to their rates means property investors have a chance to enter a very favourable market.

Those of you who’ve released equity from other properties ready for purchasing new investments will now want to keep a close eye on the market and will likely benefit from our “Flexi-Lock” service.

What is the FlexiLock Service?
Our new “FlexiLock” approach, means we’ll search the market for the most suitable product for you and continue to monitor this right up until the product goes live. If we find a lower cost or more suitable product for your circumstances, we will switch the product over.

In practice this means cancelling the rate we had secured and swapping over to the improved rate. This is done with no extra charge to you.

Lets discuss your mortgage
If you would like to discuss a mortgage on a new or current property, please use the Schedule a Call button or call and speak to our senior broker, Danny O’Keeffe today on 0208 364 3444.

The number of house sales dipped by three per cent in December
The number of UK house sales dipped by three per cent month-on-month in December, amid signs that rising mortgage rates are having an impact on transactions.

An estimated 101,920 homes were sold in December 2022, which was one per cent higher than in December 2021 but three per cent lower than in November 2022, according to HM Revenue and Customs (HMRC) figures.

The statistics notes in the report state: “The impact of the recent increases in mortgage rates may now be being observed within these statistics.” The report said house sales had generally been stable in recent months but were slightly weaker in December.

UK lenders fear spike in mortgage defaults as cost of living hits home
The Bank of England said a survey of lenders showed they were braced for a steep rise in the number of customers who cannot pay their monthly mortgage bills during the first quarter of the year.

The number of people defaulting on credit cards and unsecured credit loans increased in the fourth quarter of 2022 and would climb further this year, the survey found.

Households also face the extra costs of food and energy that have pushed the headline rate of annual UK inflation to 10.5%, well above the Bank of England’s 2% target.

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