Demand for rental homes on the rise
The current economic climate with regards to property in the UK has seen the demand for rental homes rise dramatically over the past few years. More and more people are being priced out of the property market as a result of rising property values, which have soared over recent years. Added to this is the rising interest rate, which has gone up four times in the space of a year, making I difficult for those wishing to purchase their own home to keep up with high interest repayments.
As a result of this situation many people have turned to renting properties in the UK, and this is a trend that is set to continue for some time – in fact, recent figures have shown that many people now in their thirties may never get to own their own home. With the rising demand for rental properties, landlords are set to make a fortune, and reports have indicated that the number of landlords taking on buy to let mortgages in the UK could double in the next three years.
More and more investors are now looking into taking out a mortgage to buy a property in order to rent the property out, and with rental demand as it stands it looks as though these landlords will not be disappointed with the income that they will be able to earn from their investment. By 2010 the number of buy to let landlords is set to double from nine hundred thousand to eighteen hundred thousand, which will help to meet the rising demand for this type of property.
Existing buy to let landlords are also investing more in properties, and this is because they are now enjoying great success with their current buy to lets due to the high demand. One spokesperson stated: 'If a buy-to-let landlord has tenants queueing around the block for his existing property, he is more likely to invest in another one.' An official from the Council of Mortgage Lenders also confirmed that the buy to let industry was expected to enjoy continued strength.
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