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Confidence is increasing in BTL, say Bournecoast

July 2011

DORSET Buy-to-let specialists Bournecoast say landlords are showing increased confidence in that sector and over 30% of investors are reported to be looking to increase their portfolio over the coming year.

These findings are detailed in the annual Landlord Survey carried out by the buy-to-let lender CHL Mortgages.

It found that 67% which is almost 7 out of 10 investors who responded said they felt positive about the buy-to-let market. This figure is up slightly since this time last year when that figure was 64%, equating to just less than 6.5 out of 10.

Landlords were particularly optimistic about rental demand with 43% suggesting the market is more lucrative than at the beginning of the year, being sufficiently increased to cover disbursements such as maintenance and ongoing costs including mortgage repayments. This sees 8% growth since last year.

A third of landlords who said they hope to increase their portfolio over the next year reflecting an increase of 5% since last year.

However, Bournecoast point out that a lack of finance was still cited as the biggest stumbling block to achieving this aim.

The second major constraint was caused by the abnormally high deposit requirements that are a prerequisite of buy-to-let mortgage products. The average deposit required has seen an increase of 28%.

The survey also identified that 80% of landlords use any surplus income on property maintenance and do not make inroads to reduce their mortgages.

CHL Mortgages said that the number of accounts in arrears for more than three months had reduced by 78 from 933 to 855 at the end of May, compared to last year. This is reflective of this continuing downward trend despite the uncertain economic outlook.

Simon Tebbutt, of Bournecoast said: “With rental demand increasing, the buy-to-let future is looking much healthier.

He added, “We can expect more investors into the buy-to-let arena from the uncertain world in the equity and bond markets; more so if property prices remain stagnant over the next year or two. With many properties suitable for holiday lets in the area, Bournemouth is ripe for the picking.”

For more information on buying to let and holiday lets, please contact Simon Tebbutt at Bournecoast on 01202 437888 or visit their website at www.bournecoast.co.uk.

Further Information:

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 fifteen 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 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:

Alexandra Eaton

Marketing

Bournecoast

alexeaton@bournecoast.co.uk

01202 437888

Front Bike Hire & Bournecoast

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