If you felt that last year brought a lot of contradictory news about property, mortgages, first time buyers etc, this year seems to be shaping up to bring us even more stories.
According to LSL properties, the number of homeowners in Britain has dropped to a 25 year low. Despite remaining in a majority of just over 65% over long and short term renters, apparently owning a home has got further out of reach for many, often due to the high deposits required.
At the same time, there are green shoots as usual - according to e.surv, part of LSL, the number of mortgage approvals this past month are predicted to be hitting a four year high. The prediction is based on the company's own workload. Whilst it is good news, e.surv believe that the increase is due to borrowers signing on the dotted line of high loan-to-value mortgages, so will still not spell good news for first time buyers.
Confirming the observations above, the Mortgage Advice Bureau even talks of a 'fixed rate mortgage war' having been declared in the 60 - 65% LTV bracket. Good news for those with cash available for this kind of deposit.
What does it all mean for property investors though? What reads like bad news for potential first time buyers, means that there continues to be a substantial number of people who will be looking to rent in the long term.
So, this is a good time to invest in property and become a landlord. Having said that, it is worth investing in quality property and maintaining it well, as these properties will stand the test of time - no matter what tomorrow's news may bring.
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