Boost in Buy-To-Let Market - Winkworth Witness Resurgence in Market

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The buy-to-let market continues to show signs of improvement with more lenders entering the market and existing lenders cutting rates across their buy-to-let product ranges. There are now 306 mortgages available to buy-to-let landlords, compared to just 79 one year ago.

Dominic Agace, CEO of M Winkworth Plc, said:
"There has been some resurgence in the availability of buy-to-let mortgages, although, on the whole, these still remain targeted at those with equity. As a result, ongoing supply constraints will continue to put upward pressure on rents creating good opportunities for investors with at least 20% equity to achieve healthier gross yields on investment property."

Research conducted by Winkworth, the leading estate agent, shows that growth in rental stock is slow, and demand continues to outstrip supply. Tenants are staying in their rented accommodation longer, either through an inability to join the sales market or reluctance to upsize or upgrade their rental accommodation. Furthermore, 'accidental landlords' were able to exit the rental market as the sales market improved. As a result properties are not coming onto the market. This soaring tenant demand and low stock availability has pushed up rents, which are likely to stay strong in the long term creating good opportunities on investment property.

Buy-to-let examples with healthy gross yields (based on an estimated rental value at the current market rate and assuming no mortgage):

Bath Street, Clerkenwell, London, EC1V - £345,000
7.16% gross yield (assuming no mortgage) based on an estimated rental value of £475 per week.

Bonchurch Road, Ladbroke Grove London, W10 - £350,000
6.54% gross yield (assuming no mortgage) based on an estimated rental value of £440 per week.

Rampart Street, Whitechapel, London, E1 - £339,000
5.37% gross yield (assuming no mortgage) based on an estimated rental value of £350 per week.

The Stable House, Dallington, Northampton - £315,000
4.19% gross yield (assuming no mortgage) based on an estimated rental value of £1100 per calendar month.

For more information please contact Bola Sodeinde at Winkworth press office on +44 (0) 208 576 5598

Notes to Editors:

About Winkworth
Winkworth is a leading franchisor of residential real estate agencies and is listed on the London Stock Exchange. Established in Mayfair in 1835, Winkworth has a pre-eminent position in the mid to upper segments of the central London residential sales and lettings markets. In total, the company operates from over 80 offices in the UK, France and Portugal, having doubled in size in recent years.

The franchise model allows entrepreneurial real estate professionals to provide the highest standards of service under the banner of a well-respected brand name and to benefit from the support and promotion that Winkworth offers. Franchisees deliver in-depth local knowledge and a highly personalised service to their clients. For further information please visit: http://www.winkworthplc.com

Winkworth Quarterly Analysis (Autumn 2010)
The Winkworth quarterly review analyses trends and the outlook for the UK residential property sales and lettings markets. The data for the report is gathered from a monthly survey of franchisees and should therefore be considered as indicative rather than factual. Download a full copy of the report:

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Bola Sodeinde
Winkworth
+44 (0) 208 576 5598
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