Bournecoast - Property Agents
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Buy-to-let Boom Sees No Sign of Abating

March 2012

BOURNECOAST Property Agents say that the Country is in the grip of a Buy to Let boom, seeing landlords taking advantage of low property prices.

This continues with the trend from last year when Bournecoast highlighted the ever increasing demand for Buy to Let (BTL) properties.

The estimated value of property currently being snapped up is thought to be in the region of £160 billion.

According to information released last week, there is currently a record 1.4 million landlord loans being invested into properties, as landlords cash in on soaring rental demand from young people who cannot afford to step onto the property ladder.

The low interest rates are seeing a poor return on savings but conversely are making mortgage repayments exceptionally cheap, so investing in a buy-to-let property - coupled by rents being at an all-time high across the Country - proves a sound investment for both amateur and professional landlords. Buy to Let Mortgage lending now accounts for almost 13% of the total outstanding value of all residential mortgages in the UK.

Equity-rich landlords are emerging who are entering the Buy to Let market with a view to supplementing their pension plans.

Simon Tebbutt, Business Development Manager at Bournecoast said: 'Landlords are buying low and renting high. According to the CML, when the buy-to-let market was in its infancy in 2001 landlords had obtained 185,000 loans to invest in rental properties. Compare that to today, when landlords have taken out approximately 1.39 million loans - thought to be worth about 160 billion - to spend on their property portfolios."

Last year saw a rise in demand of 24 per cent on the previous year with typical tenants being couples under the age of 35. The number of families in rented accommodation is also rising, seeing renting as the new 'norm'.

Mr Tebbutt added: "Before Christmas last year we predicted there would be a sharp rise in investment acquisitions with an increase in BTL mortgage applications which is coming to fruition, providing more evidence that the hunger for Buy to Let amongst house buyers is back after a couple of years of fairly stagnant growth."

"The market is now where we predicted it to be ten months ago. It's not a case of having a crystal ball but we fundamentally understand the property investment market. Our obvious levels of expertise allow us to fairly accurately forecast what might happen.

"Bournecoast are the area's property investment solutions provider of choice. We offer an unrivalled service which is reflected in the increasing demand from our customers for lettings, which continues to grow."

He added, "We have many waiting tenants and several new properties ripe for investment coming onto the market, which would be ideal for student lets and are capable of netting approx 4,000 per month in rent."

With the clear understanding in the local market possessed by Bournecoast, and with the unequalled experience of being established and still family run for over 50 years, the company prides itself in providing quality properties and recognising a good investment potential by being able to offer holiday lets on suitable properties to generate even more income.

For information on currently available investment opportunities and to find out more about what makes a good investment, contact the friendly team at Bournecoast on 01202 437888 or visit www.bournecoast.co.uk.

Simon Tebbutt

In 2010 Bournecoast celebrated it's 50th anniversary and has been family run since it's inception when it was established by Major & June Webb in 1960. Keith Simmons MBE, the previous managing director and Major Webb's son-in-law, was then joined by his son and daughters, Des Simmons, Veronica Strongman and Anita Smith, who now run the company with a team of seventeen staff.

Bournecoast Property Agents have extended their skill base within the ever changing property market.

Over the past 50 years Bourneocast has invested in a skilled - and award winning - workforce, ensuring each member of the team enjoys dealing with people and property whilst ensuring their knowledge of the whole property market is second to none, providing advantage over most local agents.

Issued by:

Alex Eaton

Marketing

Bournecoast

alex@bournecoast.com

01202 437888

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Bournecoast Ltd
26 Southbourne Grove
Bournemouth
Dorset
BH6 3RA
Tel: (01202) 437 888
Fax: (01202) 437 889