(1888PressRelease)
March 07, 2007 - The report first of all noted the rise in the traditional rental market, fuelled especially by students and young professionals. Typically, this demographic has neither the means nor the will to enter the homebuyers market. With students typically spending just three years away from home while studying and young professionals often relocating to other parts of the UK to further their career opportunities, renting a property is usually the most appropriate option for their needs.
According to the report, it also seems to have become more socially acceptable not to own one's own home. Again, this attitude is more prevalent among the young, who perhaps have more experience of the rental market and have grown up in a time when renting is more common than aver before. The flexibility and mobility afforded to people who rent their home is also cited as key factor in the growth of the market.
The buy-to-let market has grown rapidly over the last five years.
According to figures released recently by the Council of Mortgage Lenders, there were just under 800,000 buy-to-let mortgages taken out by the end of 2006. These account for around eight per cent of the total value of UK mortgages.
Stephen Leonard, director of mortgages at Alliance & Leicester said:
"Demand for rented property has been growing steadily in recent years and returns on buy-to-let have increased. 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."
Another notable finding of the report was the rise of the 'professional landlord', defined as anybody who earns a rental income equivalent to the national average wage. Just over a fifth of all landlords were found to fall into this bracket, with most having a portfolio of between six and 20 properties, with a combined total value of over £1 million.
All the indicators are that the buy-to-let market is going to continue enjoying growth, especially as house prices show no signs of coming down, so it seems the omens are good for the buy-to-let investor.
