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Star Letter 08/03/13

  • 08/03/2013
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Star Letter 08/03/13
Each week Mortgage Solutions picks the best reader contribution from our article comments and letters to the editor.

Each week, we round-up the best comments, emails and letters to the site and pick one reader contribution as our Star Letter. This week’s award goes to:

Falling student numbers and their impact on buy-to-let

Why has the industry have this fixation on first-time buyers and their effect on the market. Yes they are important but let’s not kid ourselves that it is they who will be responsible for the direction of the buy-to-let market.

Buy-to-let is booming and will continue to boom and the reasons are:

1. Shortage of housing in a booming population

2. Lack of social housing being built

3. Shortage of mortgage product for house movers and buyers full stop. The ability to obtain a mortgage today is probably less than it ever was

4. With interest rates at 0.5% investors see the market as being lucrative

5. People living longer

6. The divorce rate is up

7. People are more transient in their jobs

8. People getting married later

9. Huge influx of labour from Eastern Europe

10. Property is still the safest investment out there. You can invest in the financial markets and lose the lot. If a house burns down, even if it’s not insured you still have the land.

I’m afraid all this ingenious forward thinking by the banks is once again waffle.

What were the three areas of business that they saw as high risk, post credit crunch? High loan to value, adverse and yes… buy-to-let.

Buy-to-let has probably been the reason the market has recovered to where it is today. Not the lack of first-time buyers.

Dave Phipps
28 Feb 2013 | 13:03

You can read more of this week’s best reader comments in our Star Letter Extra column HERE.

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