Buy-to-let anniversary marks continued success
Posted: 30 Aug 2006 14:11:29 GMT
This year marks the tenth anniversary for buy-to-let mortgages and the Council of Mortgage Lenders (CML) has put together a new report that highlights the success of buy-to-let and predicts its continued success.
Although unheard of in 1996, buy-to-let mortgages are widely understood to have revolutionised the rental market.
CML has stated that a range of social and demographic changes have been behind the success of buy-to-let, with renting becoming more and more appealing to a larger group.
Buy-to-let mortgages made it more affordable and cost effective to invest in property at a time, the CML claims, when society was becoming more and more suited to renting.
Greater flexibility and the chance to live somewhere quickly all pointed towards renting a property.
The report states: "In 1985, 34 per cent of those aged under 25 were home-owners, but this had declined to 22 per cent by 2003.
"Likewise, home-ownership among those aged 25 to 29 fell from 62 per cent to 52 per cent over the same period. The decline in home-ownership among young people means that, in many cases, renting is the only option."
Buy-to-let is now demonstrating healthy growth and is becoming increasingly popular with landlords.
"This year, the buy-to-let market celebrates its 10th birthday. In 1998, the market was in its infancy with just 28,000 loans but, by 2005, it had grown 24-fold to 701,900 loans. This phenomenal growth shows just how popular buy-to-let has become," CML added.