Buy-to-let 'eclipsing' other investments
News Category: Industry News
Published: 07-Sep-2007
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As many as three per cent of homeowners are considering putting their money into a buy-to-let property instead of more traditional investments such as pensions and stock market shares, a new report has revealed.
According to the Mintel research, this increasing trend could see the number of UK landlords double by 2010, as belief that interest rates are peaking and new less stringent tenancy laws fuel the market.
Tanveer Karim, commercial director of the Buy to Let Business, noted: "Despite the tax relief benefits, many people today are exchanging their traditional pension for property.
"With pensions not offering their previous returns and the real cost of living accelerating at an alarming rate, property investment continued to grow in popularity as an alternative investment vehicle."
In 2006, buy-to-let lending represented 11 per cent of the entire mortgage market according to the Council of Mortgage Lenders, which has revealed that buy-to-let sector turnover amounted to £38.4 billion last year.
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