One in ten mortgages are now buy to let. Some 40,000 buy to let mortgages were advanced approved throughout the UK in three months approaching up to June 2013 worth £5.1 billion. These new figures reveal a boom in the buy to let market, with lending to landlords topping a whopping £5 billion.
The demand for buy to let properties has also seen house prices driven up. The 40,000 buy to let mortgages advanced in the three months to the end of June marked an increase of just under a fifth from the first three months of the year, according to figures from the Council of Mortgage Lenders (CML). The buy to let market is now at its most buoyant since the third quarter of 2008.
Wealthy foreign buyers are boosting the London property market prices, sending them soaring ridiculously high. They are regarded as a ‘safe haven’ for these foreign investor’s monies. A huge 60% of all London properties are selling to overseas buyers; these properties worth £5 million and over. The most money is spent in areas including Kensington, Chelsea, Mayfair, Notting Hill and Belgravia.
With Savills average pricing of £3.2 million per house in high end London, what is it that is attracting overseas buyers so much? The weakness of the pound means that there are beneficial exchange rates; boosting foreign buyer’s spending powers. The London market is currently more overvalued than any time since 1995. Halifax has confirmed that house prices have been increasing at their fastest rate in three years currently.
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