Buy-to-let market set for growth
March 6, 2007 by admin
Filed under News, News-Mortgages
More and more people are choosing not to get a mortgage and are instead renting property.
According to Alliance & Leicester, the buy-to-let market is growing rapidly and the firm expects that it will have ballooned by 40 per cent within ten years.
The company has released its Changing UK Household Market report in which it states how the market will grow and what will be the factors affecting it.
Three main drivers for the market were identified, the first of which is a rise in the renting market, with more students and single people looking for places to live.
A change in attitude among the younger generations was also named as a key factor, with it now being more socially acceptable not to own a home.
Finally, Alliance & Leicester said that larger numbers of people are now using rented property to ensure they have flexibility.
“Demand for rented property has been growing steadily in recent years and returns on buy-to-let have increased,” said Stephen Leonard, director of mortgages at the firm.
“This growth is expected to continue – as the number of renters rises further and buy-to-let becomes even more attractive to both existing and potential landlords.”
