The buy-let market is going to continue growing over the next decade and will see large growth by 2016, according to a new report.
Alliance & Leicester building society research found that the buy-let market has entered into a buoyant period and its report predicts 41 per cent growth in the sector over the next ten years.
The researchers found that the traditional rental market of students and young professionals has grown and predict it will continue to grow.
At the same time, they found that attitudes towards renting a home had changed; it is now more socially acceptable to rent a home and indeed is seen as a more flexible option by many.
Stephen Leonard, director of mortgages at Alliance & Leicester said: “Demand for rented property has been growing steadily in recent years and returns on buy-let have increased.
He added that he expects growth to continue as the number of renters rises further, making buy-let investments an attractive option to both existing and potential landlords.
Figures released last year by the Council of Mortgage Lenders showed that buy-let accounted for nearly ten per cent of mortgage lending by the end of 2006,
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