Buy-to-let market has 'buoyant' first quarter

Posted: 25 May 2007 11:23:02 GMT

The buy-to-let property market remained strong in the first quarter despite recent increases in rents, the National Association of Estate Agents (NAEA) has said.

The buy-to-let property market remained strong in the first quarter despite recent increases in rents, the National Association of Estate Agents (NAEA) has said.

Strong demand for rental property from young professionals unable to afford a mortgage and increased immigration from eastern Europe has kept the market buoyant, the association claimed.

This is despite average rents increasing by 1.77 per cent since the beginning of the year - a move largely prompted by the rise in interest rates.

It appears that young professionals in particular are willing to spend significant amounts of money on renting desirable property because they are unable to buy it.

"Properties are being let at their full asking price, unlike 18 months ago when we often had to negotiate rents down," commented Jan Bartlett, the NAEA's lettings expert.

"Economic and immigration factors continue to fuel demand, and we have also seen an increase in the number of young professionals relocating for employment, which fuels the rental market as people often rent before they buy when relocating."

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