Buy-to-let far from capacity says broker

Posted: 22 Nov 2006 11:16:34 GMT

Despite stellar growth of £30 billion in recent years the buy-to-let market is nowhere near capacity, broker Paragon Mortgages has claimed

Despite stellar growth of £30 billion in recent years the buy-to-let market is nowhere near capacity, broker Paragon Mortgages has claimed.

The room for far greater growth stems from soaring demands from 20-somethings unable to get on the property ladder and 40-year-olds with equity looking to invest.

Many of those who have now built up substantial value in their homes were also burned by pension scandals during the 1990s and are now looking for alternatives, said Paragon.

Paragon figures show buy-to-let mortgage advances grew 82 per cent over the last year.

"What is pushing that is fundamental structural changes," Paragon boss Nigel Terington told This is Money. "There is strong tenant demand being driven by demographics.

"An increasing number of immigrants are looking for somewhere to live and increasing numbers of students and 20-somethings who do not want to get married, and do not want to have children yet."

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