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&#39Slowing house price rises could boost BTL&#39

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.”


Regulation burden puts the brakes on release

This year will see a significant slowdown in equity-release new business due to the impact of statutory regulation, according to Safe Home Income Plans chairman Jon King. Despite widespread estimates of a potential market size of £50bn-£100bn, just £498m was borrowed in the first half of 2003. King believes the onset of mortgage regulation in […]

Ex-MD pleads guilty to £750k theft

Lucas Fettes & Partners former managing director Michael Hart has pleaded guilty to 14 counts of theft amounting to £750,000 at Norwich magistrates court. The former IFA has asked for 40 cases to be taken into account, taking the amount stolen from Lucas Fettes and insurance broker Heath & Co to £1.73m from 21 clients. […]

Top actuary in attack on commission

A 13-year old schoolboy has outperformed the UK&#39s top fund manager in a competition run by stock and shares website ADVFN. Roy Nelson made a £108.81 on his £1,000 portfolio. The best-performing UK fund, the Axa ethical fund run by Stuart Fowler, returned 1.12 per cent between June 14 and July 2. Steel giant Corus […]

Friends is first with online IP applications

Friends Provident is the first provider to deliver an online income-protection application which it hopes will boost IP business which has fallen by 12 per cent in total, according to Swiss Re&#39s 2004 protection report. Advisers can submit customer applications via the internet and track an application. The application does not require a signature and […]

Global income: preparing for a rate rise…

In the five years since we launched the Artemis Global Income Fund, its manager Jacob de Tusch-Lec has built a distinctive portfolio that is first among its peers. Here he explains why his “quality, cyclical and value yield” stocks, and flexible approach, leave the fund better placed to benefit from uncertainty than funds that depend […]


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