Inside Track close buy-to-let seminar programme

Mortgages for Business says this should not be misinterpreted as wider buy-to-let market concerns

Inside Track has axed its buy-to-let property seminars in the wake of sliding house prices and tight lending conditions for new-build flats.

Mortgages for Business, the leading specialist buy-to-let mortgage broker, says that Inside Track’s exit from its property seminars should not be taken as a barometer of the health of the buy-to-let market.

Inside Track and its sister companies have promoted investment in city centre new build developments. These city centre new builds is the one area of the market where there has been a significant downturn, but this is not a new phenomenon. Many of the UK’s city centres have seen a glut of this type of property released without the anticipated demand. As a result prices and rental values have now dropped.

Lenders have over the past 18 months recognised this and tightened up their lending criteria or removed themselves completely from such classes of properties.

Jonathan Moore, Head of Marketing at Mortgages for Business, said: “Mortgage lenders have been paying particular attention at transactions where discounts are involved, and now scrutinise each transaction in order to gain a true market value.

“Solid properties such as student HMOs or terraced houses tenanted to young professionals remain a sound investment.”

The buy-to-let market is dominated by established portfolio investors. According to CML statistics the large portfolio landlord remains dominant with 13% of landlords owning 74% of the buy-to-let stock, and more strikingly, 53% of landlords own a mere 3% of the stock.

“Investors who choose to part with large sums of money investing in property they haven’t seen, in areas they do not know, and through third parties are likely to experience problems. You wouldn’t purchase shares or invest in a business without first doing some background research – it is the same with buy-to-let. We have always advocated the best research any investor can do is their own research rather relying on prepackaged solutions,” adds Moore.

For more information call Mortgages for Business on 0845 345 6788 or visit www.mortgagesforbusiness.co.uk