Confidence in buy-to-let rises

The buy-to-let market has a rosy future, new data suggests

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Friday, 28, Jan 2005 08:49

People are beginning to feel more confident about the future of the buy-to-let market, a survey by the Homebuyer Show has revealed.

According to the show's survey over 70 per cent of people say they are relying on buy-to-let property for their future income.

Overall, around the country there appears to be a renewed confidence in the market.

Last week Paragon Mortgages reported that over 2004 buy-to-let returns were up 31 per cent.

It found that landlords' earnings had increased by almost a third - a considerable improvement on 2004's figure of 20 per cent.

Nationally, property values in December decreased by 0.3 per cent to £152,834.

But rental property prices remained 23.8 per cent higher than 12 months ago.

Paragon also found that rental incomes rose last year, making it the best year, income-wise, ever recorded by the Buy-to-Let Index.

Adam Applegarth, Northern Rock's chief executive, has said this week that the future for the buy-to-let market is strong, as high levels of debt and house prices will see young people renting for longer.