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Novice landlords to stop buying new properties in 2008

Nearly two thirds of brokers believe first time landlords would cease purchasing new properties in the coming year, according to new research by The Mortgage Works.

In addition, 58 per cent say that fewer first time investors would enter the buy to let sector in 2008.

Of the 3,179 intermediaries questioned in the latest survey nearly half,
44 per cent, said they believed professional investors would continue to acquire
properties in the coming months, possibly using opportunities created by
the current market to snap up some bargain purchases.

The same proportion of brokers felt professional investors would maintain their
current portfolios, with only 12 per cent of intermediaries suggesting investors
would seek to sell some of their properties.

The outlook in terms of both rental yields and tenant demand was also
strong, with 40 per cent suggesting yields would rise this year, and 94 per cent of intermediaries expecting tenant demand to either remain static or rise in some cases.

TMW managing director Andy McQueen says: “Intermediaries are on the frontline of the mortgage market and so are well placed to assess the prospects of
professional landlords. Clearly the current climate is not ideal for first-time landlords, given the limited number of deals available to them, but experienced investors may find excellent opportunities in a cooling housing market to purchase additional property.”


AMI addresses crunch questions

The Association of Mortgage Intermediaries has published a white paper on credit crunch solutions for the industry. It suggests looking at new areas of funding such as sovereign wealth funds.


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