Acceptability of renting to lead to landlord increase
(05 March 2007)

The buy-to-let property market will grow by 41 per cent over the next ten years, housing experts have claimed.

According to Alliance & Leicester bank, more positive attitudes towards renting will lead to buy-to-let properties' popularity soaring by 2016.

The claim is based upon research conducted in partnership with the Centre of Future Studies thinktank that predicts the traditional rental market will grow in line with the number of full-time students and singletons.

It also suggests that younger generations will prefer to rent as the idea of not being a homeowner becomes more socially acceptable, as well as claiming that rental properties will become more popular with people seeking more flexible and mobile housing arrangements.

The above factors will all lead to buy-to-let properties playing a "pivotal role" in the UK housing market, Alliance and Leicester predicts.

"Demand for rented property has been growing steadily in recent years and returns on buy-to-let have increased," the bank's director of mortgages Stephen Leonard explained.

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."

Eight per cent of the total value of mortgages in Britain is currently taken out on buy-to-let properties, according to today's survey.