Buy-to-let continues to grow

Posted: 28 Feb 2007 10:39:24 GMT

The buy-to-let sector continued to grow during the final quarter of 2006, a National Association of Estate Agents (NAEA) survey has shown

The buy-to-let sector continued to grow during the final quarter of 2006, a National Association of Estate Agents (NAEA) survey has shown.

Rents grew at an average 1.5 per cent over each of the last three months of 2006, rising to 1.79 per cent in December. This compares to 0.7 per cent in the same period of 2005.

This was both due to increased demand and rising borrowing costs which were passed on to tenants.

"The lettings market remained steady and strong throughout the latter part of 2006," said Jan Bartlett of the NAEA.

"Interest rate rises are a concern as many landlords may choose to sell and 'cash in' on their investment at the threat of increasing expenses.

"However, I am confident that there is still significant return to be gained from buy to let property and I hope that the initiation of the tenancy deposit protection initiative will not deter investors."

Time taken to let property also rose slightly over the quarter at an average 13 days, compared to 12 days in the third quarter.

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