Buy-to-let to grow by over 40% within next ten years, Market growth leads to the increase of ‘professional landlords’

Positive attitudes towards renting and a desire to be ‘footloose and fancy free’ have sparked a surge in the buy-to-let market – which is predicted to grow by over 40 per cent (41%) by 2016, according to a report by Alliance & Leicester Mortgages.

Alliance & Leicester’s ‘Changing UK Household Market’ report, undertaken in conjunction with the think tank Centre of Future Studies, shows that the buy-to-let market, fuelled by the growth in private rental, will play a pivotal role in the future of the UK housing market.

The three key drivers for buy-to-let growth will be:

* A rise in the traditional rental market, especially among students and single people
* Younger generations preferring to rent as it becomes more socially accepted not to own a home
* Increased use of rented property by people seeking flexibility and mobility

Current trends will also continue to contribute to the success of the buy-to-let market. For example, the rise of ‘professional landlords’ – those with rental income equivalent to the national average wage. This group now accounts for a fifth (21%) of all landlords – full article