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Immigrants Boost Buy to Let
The buy to let sector is expected to do well in 2008 despite economic problems. The sector has grown over 20% in the last five years according to the UK Housing Review and has been considered to be playing an important part in house price growth by some. Others say that the sector only contributed around 7% to house price inflation between 2006 and 2007. More important factors were stated to be rising incomes, low interest rates and few houses on the market.
Many consumers still feel that property investors and immigrants are the cause of higher house prices and this is felt also to be the main reason that first time buyers are unable to get on the property ladder.
The main reasons for the demand for rental properties are more students and large numbers of immigrants.
The immigration factor presents opportunities for buy to let investors. Most European immigrants only stay in the county a few years after which they return home. Therefore renting is far more convenient for them plus many would not qualify for a mortgage.
Many immigrants who intend to stay in the country for a longer period of time and are in well paid jobs often turn to buy to let investments themselves using their previous rental experience to help them. It is also easier in some cases to get a buy to let mortgage than a residential mortgage as long as the investor has resided in the country for at least two years.
Buy to let investors are important to help with housing in a changing country.
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