Buy-To-Let On the Rise
A recent survey by Paragon Mortgages has revealed that Buy-to-let mortgages now account for 14% of all new mortgages. The same survey reports a decline in first time buyers from 11% to 9%.
There are so many things we can point out from just those few figures. For example, has a ‘limbo’ class been created of people who will never be able to get on the property ladder and for the foreseeable future will be forced to rent? Consequently, have we now got a ‘property’ class who have so much free equity or capital they can easily accommodate an additional mortgage via a buy-to-let?
If the property bubble ever does burst could we also see the decline accelerate with the number of buy-to-let properties now owned. For example, would someone get cold feet much earlier in a declining market and put the buy-to-let on the market straight away?
I suppose in some ways the number of people renting has a knock on effect to other markets. Think of DIY, if people rent a property then it is normally the responsibility of the landlord to decorate - does this ultimately mean less money being spent on doing properties up?
That’s reminds me, does anyone know why landlords always paint everything with Marigold paint, always have economy 7 storage heaters and nearly always have brown carpets? Maybe only one book has ever been published on ‘How to Decorate Your Buy-to-let’
