Nearly one in five buy to let landlords in the UK are looking to add to their portfolio which will help fuel a boom in the property market, according to the Nottingham Building Society.
The building society has published a report which also says that 4% of homeowners are planning to invest in buy to let over the next 12 months for the first time.
Around one in three of these new property investors will be aged over 55.
Nottingham’s research also reveals that 70% of mortgage brokers believe that the government’s introduction of new pension freedom rules will help fuel the demand for buy to let mortgages.
In addition, around a quarter of mortgage brokers said that demand for these mortgages will rocket over the coming year and 41% said there would be a slight increase in demand.
Demand for buy to let mortgage products
From the research, just 2% of brokers believed that the demand for buy to let mortgage products will fall.
The mortgage services manager for Nottingham Building Society, Ian Gibbons, said: “Our love affair for property is strong and is reflected with growing demand for buy to let property.
“Our research would suggest that this demand is fuelling changes on how people can access their pension pots and clearly some will be using these funds to buy a rental property.”
He added that anyone who is contemplating getting a buy to let mortgage should use the services of a mortgage broker who can provide help and advice from the whole mortgage market.
A mortgage broker will also help offer products that have higher loan to value ratios and also lower application fees.
Letting agency plans for 200 branches
Meanwhile, one of the best-known letting agencies in the UK, Belvoir, says it will open its 200th branch by the end of 2015.
The franchise firm says it will reach the milestone to mark its 20th anniversary.
The news comes with Belvoir announcing that its management service fee income, which is what the franchisees pay, has now reached £1.76 million in the first six months of 2015. This is a growth of 14% on the previous six months and consists of a 12% charge made on a franchisee’s turnover.
Improving letting agency businesses
Mike Goddard, the founder of Belvoir, said the growth comes from improving existing letting agency businesses as well as the addition of several more franchises.
He adds that 2015 will consist of two very distinct halves with the first six months leading to subdued activity because of the General Election.
He said that potential franchisees held off from investing in a franchise because they were afraid of potential rent controls, mansion tax imposition and tenant fees being banned.
Mr Goddard said: “Since the election we have added four new franchisees and there are more in the pipeline.”
