'Higher returns' predicted for buy to let mortgage holders

19 November 2009

Written by David Whittaker

Buy to let mortgage holders may enjoy higher returns as the worst of the recession has passed, the Residential Landlords Association has suggested.

Recent rental index figures indicate that the residential rental sector is experiencing a "positive turn" thanks to improvements in the overall property market.

Buy to let returns have now reached 2.4 per cent, a figure last seen between June 2007 and July 2008 - and the highest number tracked in more than one year.

Signs of improvement have been seen in the rental sector since April this year, with investors boosted by lower property prices.

Moneyfacts.co.uk spokeswoman Michelle Slade recently commented that while the sector is improving, landlords looking for a buy to let mortgage may still find it challenging to build up a deposit.

She added that while the property market has experienced a number of positive changes since the beginning of the year, availability of buy to let mortgage deals remains scarce compared to August 2007 - a peak period for the real estate sector.

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