Charcol points to buy-to-let mortgage success

The UK's buy-to-let market is booming, according to a new report.

10:59 05 November 2004

The UK's buy-to-let market is booming, according to a new report.

Mortgage lender Charcol has revealed that seven per cent of the adult population - 3.3 million people - are considering buying a property to rent out.

Furthermore, the research found that two thirds of people who already own buy-to-let properties were keen to remain landlords for the next ten years.

"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," said Charcol's Ray Boulger.

"The reasons for the recent yield dip are clear, but as base rate peaks, the housing market steadies and rents edge up, landlords will enjoy healthier returns."

Low interest rates and concerns about the performance of pensions schemes have encouraged more people to consider property as a long-term investment.

Charcol also found that 36 per cent of UK buy-to-let investors are female and one in eight is aged under 35.