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TODAY'S OTHER NEWS

Buy-to-let to boom as landlords defy tax threat

Nearly one in five landlords plan to buy more buy-to-let properties despite the looming threat of Chancellor George Osborne's tax crackdown.

New investors are also targeting the sector, with around one in 20 homeowners planning to invest in buy-to-let in the next 12 months.

The new research from the Nottingham Building Society forecasts strong growth for the buy-to-let market, which is already worth more than £188.3 billion.

Nearly a third of homeowners who plan to become landlords for the first time over the next year are aged 55 and over.

The Nottingham’s research with mortgage brokers reveals that 70% believe the launch of pension freedoms in April will fuel demand for buy-to-let mortgages.

More than one in four mortgage brokers predict that demand for buy-to-let mortgages will increase dramatically over the next 12 months, and four out of 10 predict a slight rise.

Only 2% believe that demand for these products will fall.

Ian Gibbons, Nottingham Mortgage Services senior mortgage broking manager, said: “The nation’s love affair with property is as strong as ever and this is reflected in the growing demand for buy-to-let properties.

“Our research suggests that this is also being fuelled by the recent changes to how people can use their pension money.

“Clearly some want to use this money to buy property to rent out.”

Gibbons recommended that investors seek professional whole-of-market advice to find the right deal.

Searching the market is essential with the Nottingham's research showing that the average fee on a £150,000 buy-to-let mortgage is now £1,491. The average maximum loan to value (LTV) is 73.7%.

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