Rental property market update

Local agents are reporting that the demand for rental properties in and around Lincoln has seen a steady increase over the past few months.

The main factors responsible for this are the transient nature of the work-force, the lack of mortgage availability, and the unwillingness of people to commit to home ownership, given the high initial costs.  These include Stamp Duty, legal fees and furniture.

The rental sector has also recently been boosted by an improvement in the availability of credit for buy-to-let arrangements.  This may be because lenders perceive that the market is almost at the bottom, and therefore they are able to have sufficient security at higher loans-to –value (LTV).

In fact we are now aware of one lender prepared to lend to buy-to-let investors at 80% LTV or 200 times the monthly rental.  (If you are interested in receiving further details, please get in touch).

With these sort of deals in the offing, and provided we don’t get back to the “silly” lending of the past, there seems to be hope for a recovery in the rental property market, and the possibility that those wishing to exit will have a better chance over the coming months.