A steady increase in ‘professional landlords’ has been identified by a new report suggesting the buy-to-let market will increase by 40% within a decade.
Positive attitudes towards renting and a desire to be ‘footloose and fancy free’ have sparked a surge in the buy-to-let market, according to a report by Alliance & Leicester Mortgages.
The research revealed that there are currently 767,600 outstanding loans for buy-to-let mortgages, accounting for over 8% of the total value of UK mortgages.
“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 Alliance & Leicester.
“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.”
Professional landlords – those with a rental income equivalent to the national average wage – now make up 21% of landlords, the report claimed.
“The prediction of further rate rises this year has fuelled debate on a cooling in the buy-to-let market with rental yields decreasing,” continued Leonard.
“However, with increasing numbers of professional landlords, and the majority expecting to stay in the market for more than ten years, buy-to-let is likely to remain an important part of the overall housing market.”
© Crimson Business Ltd. 2007
