Flats For Rent London

Much has been made of the recent ‘boom’ in buy to let mortgage lending, with a great number of Britons deciding to invest their cash in property and generate returns by renting it out. But as the credit crunch has taken hold borrowing of all kinds has been restricted and this sector has been far from immune.However, with house prices having dropped sharply across the country landlords may be thinking that it is a good time to snap up some bargains, particularly as buy to let investors tend to have the long term in mind.So how is the market coping with the wholesale changes that have been seen in the financial system since the recession hit? Chris Horne, editor of Property Hawk, recently observed that the number of buy to let products available has been reduced significantly, something that may make it all the more important to compare mortgages.He explained that new landlords will struggle because they may not have enough existing equity to secure a good deal – a problem similar to that faced by first-time buyers lamenting the decline of 95 and 100 per cent mortgages.”One of the things which was propelling the buy to let lending boom was that after two or three years a landlord could switch and get very competitive fixed-term rates – either a tracker or a fixed-term mortgage – but those products no longer exist,” said Mr Horne.But it may not all bad news for the sector, as the National Landlords Association has suggested that it should be flexible enough to ensure those renting out a home can continue to be successful. Spokesperson Steven Hilton explained that a lack of finance is affecting all types of investor, but added that those who are informed will do well as the “fundamentals” remain strong.He was commenting after a University of Nottingham report revealed that established landlords are already picking up properties at reduced prices. Entitled ‘We all live in a Robbie Fowler house’ (after the footballer known to be prolific in the buy to let field), the study suggested that the market is such a key part of the British economy now that it is likely to survive and prosper despite the recession.And this was a view that may have been backed up by Timothy Lambert, sales and marketing manager at property investment consultancy Ducalian. He urged those considering an investment to act soon, securing a buy to let mortgage now rather than waiting for further price falls.Mr Lambert explained that it is much easier to negotiate when values are dropping, stating: “You will do better proportionately buying now than waiting, so long as the vendor needs that sale. We stand by our conviction that now is the time to buy for investments, first-time purchases and those trading up.”