According to a research report issued by Alliance & Leicester, as reported by The Mortgage Provider Online, 59 percent of advisors believe that their buy-to-let landlords will come to the brokers first for advice on future purchases, current purchases or other needs.
The property buyers see the mortgage brokers as the experts in terms of advice. Most believe that this trend will continue through 2008. The survey establishes the need that landlords have for brokers.
When asked about the abilities of landlords to achieve a positive new yield in 2008's shaky housing market and uncertain futures, 43 per cent of brokers believed this was likely. 33 per cent believe that obtaining a profit in 2008 is likely, if the landlords take and use necessary advice before making purchasing decisions.
Buy to let investors are out there, too. According to Birmingham Midshires, which is a lender specific to the buy to let industry, it saw an increase of 2.8 per cent in the total gross return for the investors. In 2006, this number was up 13.5 per cent and 16.3 per cent was recorded for the average increase for 2007.
In pricing of buy to let properties, an increase of 10.9 per cent has been seen over this same time of the year as last year. That average price is £154,795. In comparison, the average price paid for an owner occupied property was recorded at £197,069, a 27 per cent difference.
The most expensive buy to let areas included Greater London, with Northern Ireland having the strongest capital growth at 39.2 per cent.
