Buy to Let Property Boom

26th Apr 2007

There are a million buy-to-let property owners in the UK, but this is set to double in the next three years.

That is according to a new report from research firm Mintel, which shows by 2010 there could be two million buy-to-let landlords in the UK.

"It is clear that these days, buy-to-let is no longer the exclusive domain of professional portfolio landlords," said Paul Davies, Mintel senior financial analyst.

"Increasingly, property owners are seeing the benefits of investing in bricks and mortar and often regard the second homes market as a good alternative means of saving for retirement.

"As long as these trends continue, future growth in this market should be guaranteed."

Mintel's figures show Britons now have more faith in property than pensions. More than one homeowner in three (36 per cent) thinks it is 'better' to invest in property than a pension, going up to two thirds (68 per cent) of second property owners.

And the risks of interest rate rises or a house price crash are not putting off fewer than one investor in ten.

But the success of buy-to-let property is not good news for everyone.

"This is a real blow for first-time buyers wanting to take that first step onto the property ladder," said Helen Adams, managing director of on-line advice centre for first time buyers FirstRungNow.com.

"Demand for one and two-bedroom properties has been so high over the last few years - particularly from new landlords - that prices have risen to unattainable levels for many.

"This news means that the situation will get even worse for first timers. The government should take action to impede this trend which will lead to a divided nation - those from families with property and those without.

"Ease of availability of buy to let means that starter properties are too accessible to those who least need them."