There are still opportunities in the buy-to-let sector despite the cooling housing market, says Mortgage Trust.
The specialist lender says the prospect of a softening market brings a number of opportunities for property investors. It says an uncertain market will support and potentially boost rental demand as potential buyers may defer purchasing.
Mortgage Trust also points out that a slowdown in house price increases will provide valuable opportunities for those wanting to grow their portfolios as buy-to-let investors are by nature more flexible than their owner-occupiers and have no need to sell before they buy.
It says price rises have resulted in rental calculations being pushed to their limits for BTL borrowers, so a cooling market will improve the balance between rental income and property values, boosting yields.
Head of sales and marketing Austin Jelfs says: “Cooling prices are good news for landlords. The vast majority will be planning to hold their properties for the long term and will not be affected negatively, even if in the short term prices dip. On the contrary, a slowing down of rises is likely to have a positive effect on buy to let.”