A mini "baby boom" continues to stoke the market

A current demand in the market for rented properties will fuel the buy-to-let market for a decade, the third largest buy-to-let lender said recently.

Paragon Group said a rise in the number of twenty and thirty somethings wanting to rent rather than buy a home will stoke the market for the next 10 years. The influx of 500,000 Polish immigrants and more to come from other east European countries will also play a part in maintaining the boom.

The chief factor in continued rental growth was a mini "baby boom", an ever-increasing number of 20 and 30-year-olds leaving university with large debts.

There is a bulge in the number of the 20 to 30 age group coming into the market and many can't afford to buy or don't want to buy and that should keep yields strong for at least the next 10 years.

Figures from the Royal Institution of Chartered Surveyors (Rics) show renewed interest from buy-to-let investors in residential property. In the three months to January, demand from tenants was the strongest for four-and-a-half years.

Your home may be repossessed if you do not keep up repayments on your mortgage.
Article date: 12.06