Seaside towns 'attract buy-to-let investors'

Seaside towns have experienced some of the largest house price increases in the UK during the past year, according to new research.

Data from Halifax reveals that more than one-third of seaside towns saw price rises of at least ten per cent over the past year.

Scottish towns by the sea saw the biggest rises; prices in Girvan, Ayrshire increased by 41 per cent compared with the same time last year, the study states.

Meanwhile, St Mawes in Cornwall was revealed to be the the seaside town with the biggest house price rises in England, while Colwyn Bay saw the biggest average increase in Wales.

The figures also reveal that the average property in a seaside town costs £5,298 more than one in the rest of the UK.

"Seaside towns have generally seen firm house price performance over the past year," said Colin Kemp, Halifax Estate Agents managing director.

"They attract buyers looking for a lifestyle change, along with second home buyers and buy-to-let investors."

Separate research from Bradford & Bingley recently indicated that Brighton is the most popular buy-to-let location in the country.

Buy-to-let investors 'have choice of light refurbishment products'

Buy-to-let investors are being offered new light refurbishment products from Bank of Ireland Mortgages.

The company has introduced offers which are available to residential investors who have been landlords or property developers for at least two years.

These new products provide up to 85 per cent of the initial purchase price and hold a retention before releasing as much as 80 per cent of the after-works value once the refurbishment is completed.

A choice of different products is on offer, including a three-year fixed-rate with rental yield coverage of 100 per cent of the pay rate and a two-year tracker product with the option to change to other selected fixed rates at a later stage.

Ian Bates, head of marketing at Bank of Ireland Mortgages, commented: "The response to our professional buy-to-let proposition has been excellent and feedback from our brokers shows that demand for a product that allows experienced landlords to purchase, lightly refurbish and then let to a property's true rental potential clearly exists.

"We want to assist landlords in expanding their portfolios whilst maximising rental yields that are available."

GE Home Lending recently suggested that 2007 could be "the year of the landlord".

Gove: Buy-to-let landlords should not be penalised

The answer to the UK's housing crisis does not lie in punishing landlords, the Conservative party housing spokesperson has said.

In a keynote speech to the Chartered Institute of Housing, Michael Gove said that more houses need to be built in order to accommodate the numbers of first-time buyers who cannot afford to get on the housing ladder, according to Building.

He also spoke against the government's density rule, which suggest that back gardens should be redeveloped for additional housing.

Regarding the claim that buy-to-let investors should have their tax relief scrapped, Mr Gove said that it would a misguided idea.

"The way to solve the buy-to-let problem is to increase supply, rather than penalise any particular sector," he remarked.

Pledging to go beyond the promise to build 200,000 homes per year which was made by Gordon Brown when he was chancellor, Mr Gove complained that the small goal "displays the poverty of [Mr Brown's] ambition".

In related news, recent figures from Paragon Mortgages indicate that average buy-to-let rents increased to £10,702 in May - the sixth month in a row in which rents have risen.

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