Higher mortgage approvals should not worry landlords
The number of mortgage approvals increased last month – but not to the point where it should worry landlords with buy to let insurance.
According to new figures from the Bank of England, June approvals for property buyers went up 4% to 48,421.
But these numbers are still way below the averages seen five years ago – before the housing market crash and recession.
Back then there were an average 119,000 mortgage approvals per month in 2006 – more than double the current total.
This shows that the housing market might be showing the occasional sign of flickering back to life but it is still, essentially, in trouble.
Landlords can therefore rest assured that demand for rental property will remain strong for some time to come.
Perhaps what the figures also indicate is an increased willingness of lenders to approve mortgages and this should be good news for all landlords looking to purchase more property for their portfolio in light of the current favourable market conditions
Whether you are a landlord with a single property or one looking to expand, it is crucial to make sure you are covered by rented property insurance.