Number of landlords set to increase
According to recent reports the number of buy to let landlords in the UK could increase by100% over the next three years, with a rising demand for rental properties seeing an increased number of consumers expressing an interest in purchasing a property with a view to renting it out.
It is thought that the number of buy to let landlords could double from 900,000 to 1,800,000 by 2010 if rising tenant demand for rental properties continues.
According to the consultancy firm Mintel, which provided the data, there is set to be a real boom in buy to let mortgages and landlords in the UK over the coming few years.
The firm states that often those entering into the buy to let market have already seen friends and family make a fortune from this type of thing. The boom is expected despite the soaring value of properties in the UK, which are rising by hundreds of pounds a day.
According to the research every day last year saw nine hundred people taking out a buy to let mortgage, which according to official bodies is the highest number of buy to let mortgages on record. Buy to let mortgages are on the rise, and expected to continue to rise, even though house prices have risen steeply – for example, house prices of £60,000 in 1996 have risen to £200,000
With regards to the rising tenant demand one industry professional stated: 'If a buy-to-let landlord has tenants queueing around the block for his existing property, he is more likely to invest in another one.'
A spokesperson from the Council of Mortgage Lenders
said: 'We would expect to see strong, continued growth in the buy-to-let market.'
3rd June 2007
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Rather like a full house in poker there seems to be a wide selection of mortgages on the market, but aren’t many of them the same kind of product?
- How long would you like you mortgage to run? The simple answer would be as quickly as possible, but not everyone can, which means higher repayments and more strain on the household budget.
- Mortgages – What Will Be Next?
Maybe some forty years ago mortgages were very solid things that you took out: you would stick with the same company for the entire period of the loan and you could find fixed rate deals that would also last the full twenty five years.