There is growing evidence that clients are prepared to pay higher rents for green buildings, according to energy efficient specialists Sabien Technology.

It says while there is a long-established trend in America for buildings with a good energy rating to attract a higher rental income than other buildings with a lower rating has started to take hold in the UK.

Alan O’Brien, chief executive of Sabien says: “There is growing evidence that clients are prepared to pay higher rents for energy efficient buildings in the UK. By going green and future proofing buildings, owners can enhance yields and improve occupancy rates. Over the life cycle of a green building the savings can also offset a higher initial outlay and result in low, or even negative, carbon reduction costs.

“Tenants are attracted to green buildings as they see sustainability as an important product differentiator in the marketplace."

While it may be costly to make your commercial or residential property greener, you could save money in the long run. And it is possible to use your property to raise funds to pay for double glazing, insulation, efficient boilers, solar panels and any number of other green implements that could save on your bills and possibly allow you to glean more rent from green-minded renters. Talk to a buy to let adviser about your finance options and your property's potential.

O'Brien says: “In the long term, buildings which perform poorly in terms of sustainability and energy efficiency will become less attractive to occupiers as the Government introduces penalties to encourage energy efficiency and increased sustainability."

SOURCE: Sabien, 20/04/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

The lure of buy to let success is becoming too much for some landlords and despite the continuing tough economic climate, one in eight landlords are looking to purchase more investment properties.

According to Paragon Mortgages, 12% of landlords plan to purchase investment property in the second three months of 2010. Those who listened to good financial advice and those who did the right thing with their investment and their money still have the means to secure another buy to let mortgage and make their portfolio more profitable.

The data suggests landlords should be confident enough to try and get hold of a new loan – Paragon says tenant demand remains strong, with 24% of landlords stating that demand grew during the quarter. They also think tenant demand will strengthen considerably, with nearly four out of 10 landlords forecasting demand for their property to be higher in 12 months’ time.

And it's not just rental income protection that's on the up – the average portfolio value has increased for the second quarter in succession, rising by 6.1% during the period to £1.52m – landlords expect the average value of their portfolios to be 1.2% higher in twelve months’ time.

Nigel Terrington, Paragon chief executive, says: "Demand for property investment has remained strong during the recession and has improved since house prices stabilised. Landlords know that the long-term forecast for tenant demand is extremely healthy, with socio-economic and demographic changes leading to growth in the number of households calling the private rented sector home."

So if you think it's time to build on your portfolio, talk to a buy to let mortgage adviser about your chances of securing a loan. With the right advice and the right mortgage it might just be the right time for more buy to let profits.

SOURCE: Paragon, 14/04/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

There are simply not enough rental properties in the UK and people are crying out for good accommodation – so take advantage of the drought by investing in profitable buy-to-let right now.

Thanks to a lack of new homes being built coupled with people's inability to get mortgage credit, the UK is in dire need of good quality rental accommodation, according to the Association of Residential Letting Agents.

It found that more than half of respondents at its latest conference said there is an insufficient supply of rental stock as the biggest issue facing the sector. Ian Potter, operations manager at ALRA, says: "This is a very serious issue. At the end of last year we highlighted that a lack of properties will be a defining factor in the housing market in 2010 and our member agents across the country have confirmed this opinion as fact. The UK is in dire need of good quality rental accommodation."

Demand for property means rents rise and that means more potential profits for buy-to-let mortgage investors. If you pick the right property you can afford to set your rent higher than if the nation was awash with property.

If you have the right property, the right mortgage and the right advice under your belt, there is no reason why you cannot make a killing through renting out a buy-to-let property. Talk to a buy-to-let adviser today about taking on an investment property that can offer you returns better than any other investment vehicle.

SOURCE: ARLA, 27/03/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

More landlords opted to remortgage their buy to let properties in February – is it time for you to get a new mortgage deal before rates start to soar?

According to John Charcol, remortgage rates soared by 50% in February, but it says that detailed analysis of the figures shows that all of the increase in remortgage activity over the last two months is due to a particularly sharp increase in buy to let remortgages.

Many more landlords are realising that sticking on their mortgage lender's standard variable rate is not the most sensible option – while the base rate might be low now, it has to go up some time and a good mortgage broker will tell a landlord that they need to remortgage sooner rather than later if they are sitting on an SVR.

It might mean taking a hit in the short term, but remortgaging now may save hundreds of pounds a month in the medium and the long term. And a good landlord thinks long-term because a buy to let investment is a long-term investment.

If you think it might be time to remortgage, talk to a mortgage broker about getting hold of a new deal. They will help you find a remortgage that fits with your property, your rental income and your finances. And don't be put off if it means paying more for now, because a mortgage broker will always have your best interests at heart.

SOURCE: John Charcol, 10/03/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

You have probably heard about all the good things about buy-to-let mortgages but what are the risks? What do you need to be cautious of when investing in property?

The first thing to remember is that your buy-to-let loan and your residential mortgage are not mutually exclusive. If you fall behind with your residential mortgage payments then you may put your rental property at risk, and vice-versa. That is why it is so important to get professional mortgage advice before taking out a rental loan – if your loans can't work together then they cannot work at all.

You also have to know that you need to be able to show that your rental income covers 125% of your mortgage repayments in most cases. This means choosing a success property in a good position is as important as getting an affordable loan – picking a property that doesn't attract renters means you will not be able to pay your loan. So it's important to have a good estate agent, to do your homework and make sure for certain that the property you want will deliver results.

Just like a residential loan, if you don't pay the mortgage you risk having your property taken from you. Of course, if you have tenants living in your property that just adds to the responsibility – being a landlord means making sure you are comfortable but also your tenant is comfortable too as they are your lifeblood and without them you can't pay your mortgage.

You also have to be sure that you have a good letting agent because if your property is empty for any period of time, you will suffer. Even if you have a prime property in a great position without a good letting agent no one will know its available for renting and you will be forced to pay the mortgage from your own pocket. Buy-to-let is a whole process, and all the aspects of that process need to work properly for your investment to succeed.

Being a buy-to-let investor is a lot of work – on top of all this are reams of regulations and forms that have to be filled in to satisfy that you are a legal and safe landlord. But with a good buy-to-let mortgage and a good financial plan all the other problems will not seem as big and will be a whole lot more manageable. Talk to a buy-to-let mortgage adviser about getting on the right track with the right buy-to-let loan.

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

A good landlord who has taken some good buy-to-let advice will probably be making a tidy profit each month – but what is the best thing to do with this extra money?

Because mortgages are still hard to get hold of, and because house prices have stood up to the recession, many people are be forced to rent. So there is more rental income out there and more landlords are making money on their property investment. But what's the best thing to do with that money?

To know the best answer for your situation, you need to talk to a buy-to-let mortgage expert. They are experienced in managing money and making sure buy-to-let investments work as well as they can.

It might be that you should pay the money back into the mortgage, overpaying each month so as to reduce your debt. It might not be the best option for everyone, but it's a great way to reduce debt and improve your chances for a better mortgage in the future. It might even be prudent to invest into the property itself, improving and renovating it to make it more attractive to renters and to allow you to charge more rent.

Or it might be better to invest your money elsewhere. As well as knowing all there is to know about buy-to-let mortgages, a good adviser will also know about where the best investments are right now. It might be an ISA, an investment fund or even a pension – everyone is different and that's why you need expert advice.

Alternatively, it might be best for you to look to increasing your property portfolio. Again, it is not the right choice for everyone but a good adviser will know whether it would benefit you to invest in another property and step up your rental business into the next gear.

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

People invest in a buy-to-let property because they want to make money – but if you are not making money it might be time to do something about it.

Recent figures from LSL Property Services found that, if average rental income and property prices kept on the trajectory they were on in January, a landlord would make a total return of £27,500 on a typical property this year.

That's a better return than most investment funds, and certainly better than any savings products that are on the market. But are you making a decent return on your property?

It might be down to the state and position of your property. But there are things you can do about that – talk to your buy-to-let mortgage adviser about taking money out of your property through a loan or a remortgage so as to be able to renovate the property and make it a sought after home. Investing in your home is a sensible, viable option that, with the right advice, will lead to better rental yields.

But it might be that you are simply paying too much on your mortgage. You may have got your loan several years ago and have now lapsed onto a more expensive variable rate. If this is the case and you need to find a mortgage that doesn't sap quite so much of your rental income, talk to your mortgage adviser. They will be able to help you scour the whole UK buy-to-let mortgage market and hopefully find you a cheaper loan.

Don't be content with just getting by with your buy-to-let loan. House prices are rising against the odds and rental income is high. There is also a lot of demand for rental properties while so many people are unable to get onto the housing ladder – all this spells rental success. So make sure you're taking advantage of this purple patch with a mortgage that works.

SOURCE: LSL, 15/02/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

If you do not actively keep checks on your buy-to-let investment you could be seriously out of pocket as a victim of crime, according to the National Landlords Association.

The NLA says rental properties are being targeted by criminal gangs as a cover for illegal activity. Criminals are renting properties to use them as cannabis and crystal meth factories. But it’s not just drugs – prostitution is also found across the private-rented sector, with homes being used as brothels.

Unfortunately, when these kind of crimes take place, it’s the landlord who ends up footing the bill. Many insurance policies are rendered invalid when criminal activity takes place in a property and the damages caused can run into thousands of pounds.

David Salusbury, chairman of the NLA, says: “It is vital landlords are aware of the threat these criminals pose. Criminal activity not only has an impact on the landlord’s property, but on the community as whole. The production of some drugs involves highly flammable material, which poses a dangerous fire risk. You may think ‘it will never happen to me’, but these incidents are on the increase. The checks you make before a tenant moves in are a key way to prevent becoming a victim of these crimes.”

The key to good buy-to-let investment is vigilance. Be careful who you rent to, don't be a stranger in your own property and always make sure that your property is working how it should, making you as much money as it should.

SOURCE: NLA, 08/02/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

The private rented sector has just got over the curse of the 'reluctant landlord' but now there is some good news for buy-to-let landlords as the UK housing market is experiencing a trend of ‘reluctant tenants',

These renters are those who have to rent, rather than want to rent as a result of a shift in supply and demand for properties, according to the Association of Residential Letting Agents.

According to ARLA, at the end of 2009 an average 41% of letting agents surveyed reported more tenants than properties – compared with just 24% last quarter. In addition, ARLA research among landlords revealed that 54% of those asked felt that consumers were being forced to rent rather than buy.

Ian Potter, operations manager at ARLA says: "New tenants include those homeowners who were forced to sell their home during the last year either due to financial instability or a job-move. And many people now in a position to buy are struggling to find the right property, as there is also a shortage of both properties for sale and realistic mortgages. This rise in tenants is a positive sign for the industry, as it indicates increased market movement."

This is great news for the buy-to-let sector – tenant demand reached a low of 10% in February 2009, so now as things pick up landlords can finally cash in on more people looking to rent more properties. This, hopefully will translate into higher rents and if the landlord has the right mortgage, more rental profits.

ARLA also found that the average void period for the UK down from four weeks to 3.9 weeks, as tenants snap up available properties quickly – so as well as more demand and more room for higher rents landlords can be confident that if they have an empty property, it is not empty for long.

SOURCE: ARLA, 23/01/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

Are you looking to increase your buy to let portfolio? If so your first port of call should be a buy to let mortgage expert.

It might sound strange to ask such a question while we are still in the worst recession in 70 years, but landlords are considering investing now – in fact 10% of landlords plan to purchase residential investment property in the first three months of this year, according to Paragon.

They are considering buying now while house prices are still relatively cheap and rates are low. Also, nearly two thirds of those asked about their potential purchases, a third said that they would look to purchase a terraced property – it's cheap and it's perfect for students and young professionals, both of whom can make you some great rental profits.

However, mortgage finance looks set to remain a serious issue for residential property investors in 2010, with mortgage conditions worsening in the final quarter of 2009. Landlords reported to Paragon that it was more difficult to secure mortgage finance during the fourth quarter than in the previous three months. There is no doubt that it is still tough to get additional buy to let credit, but there are new lenders in the market now and if house prices keep rising, more mortgage lenders will want to offer affordable loans to good borrowers.

John Heron, managing director of Paragon Mortgages says: "It is encouraging that landlords are still active in the market and are looking to expand their portfolios. With tenant demand at such strong levels and soft house prices presenting the opportunity for bargains, it is easy to see why. But investors continue to be frustrated by a lack of choice and competition in the buy to let mortgage market."

If you want a new buy to let property, you need a new buy to let mortgage. So speak to your mortgage adviser about your options right away. Rates will soon be rising, as will house prices, so the sweet spot for investors may be now.

SOURCE: Paragon, 19/01/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog