Continued growth for buy-to-let market
Posted: 30 May 2006 09:47:48 GMT
Confidence in the buy-to-let sector is reportedly high following growth of almost 20 per cent within the last two years.
A report from Alliance & Leicester Mortgages points to a record number of buy-to-let mortgages last year and notes that 76 per cent of mortgage brokers observed a rise in demand for buy-to-let loans in the last three years.
It is certainly a sector that has been attracting more and more interest from investors and 55 per cent of brokers believe it will continue to grow in the next to years.
Encouragingly, 19 per cent are optimistic that the market could even see growth in excess of ten per cent, driven by the arrival of better value products.
Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester, said that the findings of the report were unsurprising, with an increasing number of people investing in the sector to boost profits and to supplement their pension income.
The news comes after Paragon Mortgages announced that buy-to-let lending had increased by 111 per cent to £1.33 billion in the six months to March 31st.
Chief executive Nigel Terrington suggested that the increased demand for rented accommodation was partly due to a recent influx of eastern European workers.