Rick Flay at Belvoir Sheffield, the leading letting agent in Sheffield, is advising landlords that despite of the re introduction of the 90 per-cent mortgage earlier this week by some of the industry’s biggest players, the rentals market is set to remain buoyant and that renting is still an extremely savvy investment option.
Rick Flay from the firm who offer houses to let in Sheffield, apartments in Sheffield and studios in Sheffield, said, “It is certainly true that we are seeing the re introduction of the 90 per-cent mortgage by some of the high street lenders, but in rather small doses. The problem is that while there are some mortgages out there for buyers who are struggling to find a deposit, there still seems to be a misconception that this will mean the end to the troubles previously faced by the property market.”
Loan providers have been nervous about falling house prices and the deteriorating economic environment and have turned to new lenders in recent months to come up with much larger deposits, and although falling house prices are becoming a great temptation for the first time buyer, getting a 90 per-cent mortgage is still like finding gold dust. What’s more, even if a buyer does come across a good deal on the high street, many are wary that house prices are set to fall even further and are worried that now is not the time to buy.
Rick added, “There is still a very long way to go before the sales market stabilizes and to bridge that gap first time buyers are favoring rentals and homeowners are looking to find tenants as a short term solution rather than selling while the industry remains flat, you could say that investor confidence has taken a big knock.”
23 year-old Gareth Vipers, from Nottingham, has been struggling to get on the property ladder and has finally found a solution, he said, “Getting on to the property ladder is really difficult for first time buyers anyway, but particularly in the recession. It is really hard to find a mortgage lender, so renting seems to be the only option. We are fortunate enough that my parents are able to buy a property for us to rent, this means that we can sort of get on the property ladder without having to sign up to a large mortgage ourselves.”
Rick, from Belvoir who specialize in providing tenants with properties to let in Sheffield , added, “The number of deals available to borrowers with smaller deposits still remains tiny compared with this time last year, and the number of sizable mortgages actually being offered to borrowers is still being kept to a minimum.
“My best advice to those looking to get one foot on to the property ladder would be to rent until the time is right, after all it is better to strike while the iron is hot and wait until property prices have stopped falling.”
About Belvoir:
Belvoir Lettings Sheffield are the One Stop Specialists for Lettings including Property Management, Tenant Find, Investment and Wealth Management Advice, Fit-outs and Renovations, Furniture Packs and Investment Property Insurances.
Belvoir Lettings now ranks as the fastest growing letting franchise in the UK with over 145 offices in areas as far afield as Moray in Scotland and Portsmouth in the South of England, with more scheduled to open in the next few months.
We provide the best possible service to Landlords and Tenants because our local owners personally manage all essential aspects of lettings, each operating under licence from BELVOIR Property Management (UK) Ltd. At the same time, they operate under the highest standards of professional conduct following required procedures by the franchise licence.
Offices are supported by a series of products and services unique to BELVOIR agents. These include market leading insuranc
