Buy-to-Let Boom in Property Market
Lillington, Catherine, Birmingham Evening Mail (England)
BUY-to-let properties around universities in the West Midlands are being snapped up, according to a new survey into property investment.
Brokers in the region sold 190 buy-to-let mortgages during October 1998 and the most popular areas were Edgbaston, Aston and Stafford.
Students moving to the areas to be nearer to universities in Birmingham, Aston and Stafford have caused part of the boom and families are also taking up residence in the homes which generate pounds 50 million a month across the country.
Stephanie Yaguer, of Mortgage Express who carried out the survey, said: "Large numbers of students in these areas does have an impact, but a lot of families are also moving in. People are becoming more and more keen on the idea of buying properties to re nt out to others rather than live in themselves. Returns are increasing so the trend will continue."
The survey also revealed the most sought-after properties are two to three bedroom post 1960s homes - 33 per cent of all investment properties sold.
Most buy-to-let mortgages were taken out by men - 81 per cent - but some brokers reported a significant rise in interest from women looking to invest in the property market. The majority of people were professionals, with a high proportion in finance, me dical, or service occupations, or self-employed in the building industry. And three in four people were aged between 31 and 40.
Tim Dawson, Mortgage Express' deputy managing director, said: "The buy-to-let market remains extremely buoyant. Consumer demand and the potentially lucrative returns have attracted many budding landlords - and lenders. …