LETTINGS NEWS: South west is a leading area for buy to let expansion
Mortgages for potential landlords now account for an 17 per cent of all mortgage lending in the UK, but in the south west region the figure is even higher at 20 per cent.
The region is also one of the most active in the country for remortgaging by existing home owners – often a way of people securing funds for a deposit for a buy to let investment.
The Association of Residential Letting Agents, regarded as the most respected body for letting agents and which has East of Exe amongst its members, says the surge towards buy to let is down to two factors.
Firstly the rental market is forecast to grow by a quarter in the next five years, and secondly because ‘pension freedom’ has been used by many older investors to divert funds from pensions with relatively modest returns into property.