Buy-to-let to grow 40% by 2016 claims report

Posted: 05 Mar 2007 11:20:21 GMT

Rocketing growth in the buy-to-let sector will continue with expansion of at least 40 per cent in the next ten years, Alliance and Leicester has predicted

Rocketing growth in the buy-to-let sector will continue with expansion of at least 40 per cent in the next ten years, Alliance and Leicester has predicted.

The social trends and supply issues which have driven growth in the sector over the past ten years since the launch of the first specialist mortgages can only continue, it added.

The success of the market can be measured by the number of 'professional' landlords – buy-to-let owners whose rental income is equal to the average wage, said the bank.

"Demand for rented property has been growing steadily in recent years and returns on buy-to-let have increased," said Stephen Leonard of Alliance and 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."

Rate expectations had dampened some of the recent buy-to-let financial speculation in the short-term he added, but over the long-term the prospects remain good.

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