Buy-to-let market in line for decade of growth, finds Charcol

The buy-to-let market will increase by between eight and 12 per cent over the next decade, according to mortgage broker Charcol.

10:13 15 December 2004

The buy-to-let market will increase by between eight and 12 per cent over the next decade, according to mortgage broker Charcol.

Charcol foresees up to 300,000 properties being added to the rental market in the next ten years.

A combination of factors including tax breaks and an increasingly flexible job market are behind the boom, the mortgage provider found.

It also believes there will be a shortfall of over half a million properties available to purchase, which will see first-time buyers increasingly postponing their first mortgage and renting for longer.

Charcol's senior technical manager, Ray Boulger, said: "There's been plenty of speculation about jitters in the buy-to-let sector, but a convergence of socio-economic factors suggests strong prospects over the next decade.

"We believe one of the biggest triggers for market growth will be the ability to house your buy-to-let property within a pension scheme from April 2006, and thus attract significant tax relief."

Charcol found that 3.3 million UK adults are considering buying property specifically to rent it out in the next 12 months.

A survey of existing buy-to-let landlords released yesterday found that the overwhelming majority (86 per cent) expect to maintain or increase their buy-to-let portfolio in the next 12 months.