Buy-to-let growth expected

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The UK buy-to-let market could expand by over 40 per cent over the next decade, according to new research.

Alliance & Leicesters latest Changing UK Household Market survey discovered a growing rental trend in the country, especially amongst students and younger people that could ensure a booming buy-to-let sector for the next ten years.

In addition, escalating house prices means that more potential first-time buyers have to opt for rental properties while they save for a deposit on their own home and this is ensuring strong demand for competitively priced rental properties.

There is also evidence that more people believe renting property rather than owning their own home means there are less tied down and can enjoy a greater level of flexibility.

Stephen Leonard of Alliance & Leicester explained: "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," he added.

It is estimated that eight per cent of the total value of mortgages in Britain is held on buy-to-let properties.

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