Recently, the government has made life for buy to let landlords a little more difficult, to try and help first time buyers onto the property ladder. Despite this, continuing interest rate cuts are making the market more and more attractive.
The average interest rate on a two year fixed rate mortgage for those buying to let has dropped are the last year, falling from 3.59 per cent to 3.32 per cent. The average five year fixed buy to let mortgage rate has also now dropped to 4 per cent.
Demand for buy to let mortgages has risen, making the market much more competitive. This has led to some very good mortgage deals that some opportunistic landlords have taken up. This contrasts the market for first time buyers, for whom the market is still a hostile place.
With little ability to save deposits high enough, and with the Help to Buy schemes not having altered the market, only helped individuals, young adults are still falling into the renting trap, and having their money drained by having to rent, rather than purchase.
Unfortunately, when these two groups look to buy the same property, it is the buy to let landlord who will be in the stronger position to purchase. Homeownership is at risk of becoming nothing but a dream for the young people in the UK.
