Is the buy-to-let market about to boom?

With predicted figures for property prices looking to increase by at least 5% next year, the buy-to-let market is set to go crazy with more people than ever wanting to rent.

The buy-to-let market rose by 10% this year alone according to the Royal Institute of Chartered Surveyors and the rise is set to continue. Demand is strong and investors are able to secure some excellent deals, making this the age of the buy-to-let.

The rise in 100% mortgage borrowing has lead to buy-to-let properties accounting for 11 per cent of the total mortgage market in 2006.

The housing market has come a long way since the Council of Mortgage Lenders recorded its first ever figures in 1999. There are several factors that have lead to the market boom that we are now experiencing, but none so powerful than possibilities that people see within the housing market for investment return and the thousands of people looking to rent from them.

Back in 1999 there were just 73,200 mortgages worth £5.4 billion and now figures are around the £100 billion mark and there are 849,900 buy-to-let mortgages.

It is clear that consumers see property and buy-to-lets in particular as an obvious place to invest money for retirement or as an actual income and the demand for properties to rent will continue to grow. With growth in student property to accommodate the number of university goers, affordability issues for first-time buyers, the break-up of the family unit and mass immigration there has been a huge change in attitudes towards renting and will see the buy-to-let market’s biggest figures in 2008.