Specialist buy to let mortgage lender, Paragon mortgages, has reported that between Oct 2013 and June 2014 it experienced a massive 95% year on year increase in the volume of buy to let mortgage advances it administered.
It revealed total mortgage advances of £456.3m in the financial year to date, up from £234.9m for the same period last year.
John Heron, managing director of Paragon Mortgages, said: “The last quarter was very successful for the mortgage business and the wider group. The buy-to-let business continues to grow and the credit quality remains outstanding.”
The CML (Council of Mortgage Lenders) have also reported an increase in buy to let lending.
It is obvious from these figures that investment in residential rental property continues to be an important element of the UK housing market. Not only does it offer a broadly stable long term investment vehicle for landlords, it also makes an important contribution to the provision of housing in the UK.
More and more UK residents are choosing to live in privately rented accommodation due to the flexibility it offers and savvy landlords are continuing to build their portfolios to capitalise on this.
Although it does offer long term lucrative returns, the decision to purchase a buy to let investment should not be taken lightly. It is not a license to print money. It is a long term going concern with many obligations and regulations. For any individual considering a buy to let investment it is advisable to research the concept thoroughly. Reading a lettings guide or landlord checklist is a great place to start.