The Bank of England have recently outlined a new proposal to impose stricter lending criteria for buy-to-let investors. If agreed, these extra powers could see new buy-to-let landlords having to put down a 40% deposit in order to secure a mortgage.
Property prices across England and Wales have climbed at their fastest pace for three years in June, indicating that the UK could be tipped for a housing market boom.
The UK’s housing market is going from strength to strength, according to the latest figures, with property prices rising at their fastest pace last month since June 2010.
Property prices in the UK climbed up by 0.4% in May, according to the latest figures, bringing the average cost of a home in England and Wales to £167,912.
With buy to let lending taking up an increasing share of the mortgage market, up from 12.9% in the last quarter of 2012 to 13.4% in the first quarter of 2013, it seems that more and more buyers are keen to enter the rental market.
One and two-bedroom properties provide the highest rental returns for investors with average yields of 6.8% and 6.4% respectively, according to data from Countrywide, the UK’s largest lettings agent.
Would-be homeowners in the UK are struggling to keep pace with the housing market, as a recent study has revealed that the last decade has seen property prices rise at three times the rate of wage increases.