The buy-to-let market is set to grow in 2007, with the latest figures showing that around one fifth of mortgages will be taken out on homes which will then be rented.
According to Birmingham Midshires, the UK’s biggest buy-to-let mortgage lender, the coming year is likely to see a surge in lending for buy-to-let properties.
The lender carried out a survey of around 2,000 Britons and found that people of all ages are now looking to buy a property as an investment.
It found that 40 per cent of people in their 20s want to invest in a buy-to-let property at some point during 2007, while a quarter of single parents also want to do the same.
“The buy-to-let market has grown consistently over the past decade. When you consider the returns available, in terms of both capital appreciation and rental yield, it’s easy to understand why property investment continues to grow in popularity,” said Tim Hague from Birmingham Midshires.
“A growing number of people see property as an important part of a balanced investment portfolio.”
The buy-to-let market has consistently out-performed other investment opportunities in recent years and, with weekly rents having increased by 1.3 times the rate of inflation in the past ten years, it is understandable why many people are choosing to buy in this way.
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