A study by the lender indicated that a rise in the traditional rental market, led by students and young people, would be the main catalyst for growth in the buy-to-let sector. An increased use of rented property by people looking for flexibility in their lives was also mooted as another market driver, with A&L indicating that a growing number of people preferred to rent as it was becoming more socially acceptable to not own a property.
The research also revealed that 21 per cent of those active in the buy-to-let market were professional landlords.
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Commenting on the findings, Stephen Leonard, director of mortgages at A&L, said: “Demand for rented property has been growing steadily in recent years and returns on buy-to-let have increased. This growth is expected to continue as the number of renters rises further and buy-to-let becomes even more attractive to landlords.”
Kim Barrett, proprietor at KS Barrett & Associates, said: “It is surprising that the buy-to-let market is developing as quickly as it is. People are deciding that they want to rent, or can’t afford to buy, so have to look at the rental market, and the buy-to-let marketplace will cater for these people. There is certainly potential for the market to continue its growth, but there is also the possibility of a market correction, depending on changing economic conditions.”
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