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Buy-to-let market strong for 2008

22/11/2007

Buy to let mortgage lenders are in for broader competition next year thus making this sector strong for 2008, Building Societies Association (BSA) reports.

PR policy manager, Neil Johnson, from BSA, stated that lenders who can find "high quality" borrowers are expected to do well in the New Year, regardless of current financial circumstances.

Buy-to-let will always stay a "good business" simply due to strong demand for rented accommodation.

"You will find people that want to rent and there are still people unable to buy so while that remains the same there will always be opportunities out there for buy-to-let investors," Mr Johnson added.

Conversely, investors should be cautious of purchasing properties in areas where the market is already "filled".

Royal Institution of Chartered Surveyors report stated that investors are now required to forward a down payment deposit of £64,000 in order to go through the buy-to-let propertymarket procedures, whiles during 2002 the average down payment required was only £10,000.


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