Latest Property News around Barry, Cardiff
Buy-to-Let market defies the 'slowdown'
Higher interest rates "have no impact" on the long-term health of the buy-to-let market, a new survey by Bradford and Bingley claims.
In the "largest ever" survey of UK landlords since 1996, when Bradford and Bingley were the first to offer a specific buy-to-let mortgage, the group revealed that more than half of landlords plan to increase their property portfolios.
Contrary to reports of overstretched buy-to-let landlords, the survey of almost 5,000 landlords found that only 4pc plan to reduce their portfolio of properties in the next six months.
The survey's findings also dismiss claims that buy-to-letters are just in the market for a quick return, revealing that 50pc have been investing for more than five years, and only 7pc have been investing for less than a year.
The current most popular buy-to-let spot is Brighton, with almost a third of landlords owning an investment property in the region.
Hailed as the "jewel in the South East's crown", Bradford and Bingley claims Brighton is "enjoying the fastest rate of growth" at the moment, driven by its large student population and close proximity to London.
London follows Brighton, as the second most popular buy-to-let area of the UK.
The average landlord is "more Joe Public than Duke of Westminster"; typically male and aged between 36 and 45, with between one and five buy-to-let properties in their portfolios.
Only 10pc of the buy-to-let investors surveyed were full-time professional landlords.
The majority are "everyday people" seeking capital growth and a means to supplement their pension pots.
Andy Wiggans, director of mortgages at Bradford and Bingley, said: "Despite recent reports of a slowdown in the buy-to-let sector, our biggest ever survey of those at the heart of the market show it remains strong.
"Higher interest rates may have an effect on cash flow but they have no impact on long-term capital returns."
The most popular investment property is the terraced house, with 58pc of landlords questioned by Bradford and Bingley having at least one terraced house in their property portfolio.
According to the Council of Mortgage Lenders the average buy-to-let mortgage was £117,548 in the second half of 2006.