Scottish Rental Market Set to Grow Further
New mortgage lending regulations that came into force on the 26th appear to have tipped the advantage towards buying to let mortgages.
Mark Dyason, director of Edinburgh Mortgage Advice recently said: “This summer will see competition tilt back in favour of the landlord. First-time buyer applications, especially at higher loan-to-values, will come under far greater scrutiny than those by landlords.”
The rental market is set to continue to grow as many first-time buyers are putting off buying a home and renting for longer, and with house prices rising rapidly in some areas of Scotland it's not difficult to see why.
With mortgages for first-time buyers more difficult to obtain than those for the buy to let market, we are sure to see this trend increase. A recent report by the UK Housing Review says that this has given landlords a “significant competitive advantage”.
This same report concludes that rising rents are giving landlords as much as a forty percent premium over the cost of the mortgage. This has generated a lot of interest in the buy to let sector and the prospect of high returns means that more interest will be generated in the future.
Some would say there is no better time to become a landlord as Scotland has a thriving market with predicted further growth and increasing rates of return.
However while we at 1LET would say that the buy to let market currently shows no let up, there are many factors to consider when investing in property. Professional advice, local market knowledge and realistic financial planning are all essential - there can be nothing worse than an ill-considered investment.