Buy to let back in favour in UK
One area of the economy tipped to flourish in the coming months is the buy to let sector.
The drop in UK property prices is attracting cash rich investors back to this sector of the market. Recent data from LSL Property Services show a positive yearly return on buy to let property for the first time in more than two years.
Many new landlords joined the market in the earlier part of this decade while business was booming but the start of the credit crunch in the summer of 2007 saw some investors in serious trouble. A property bought after July 2007 and rented out during the next fourteen months would have shown a loss.
The Council of Mortgage Lenders recently reported a 10% increase in the amount of UK mortgages taken out for buy to let purposes.
While new home construction is recovering slowly, and many first time buyers are still uncertain whether to take the plunge, rental property is still proving a popular choice in the UK.