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Buy-to-let booms despite faltering property market

Buy-to-let booms despite faltering property market - UK - buy-to-let - property market

The number of buy-to-let properties soared by 84,000 last year, the Council of Mortgage Lenders (CML) revealed on Thursday. Buy-to-let mortgages now account for nearly 13 per cent of the total outstanding value of home loans in the UK.

Does that mean investing in property to rent is beginning to make sense again, despite the moribund property market? Jonathan Samuels of Dragonfly Property Finance believes so.

"Buy-to-let is nowhere near the giddy heights of 2007, but these latest figures confirm that it's on its way back," he said.

"Landlords are making hay while the sun shines, adding to their portfolios in order to increase their exposure. The fact that property prices are low is contributing to this trend. It means landlords can buy low and rent high, manna from heaven!"

His opinion was backed up by a sharp climb in the number of renters in the UK. Last year, more than 275,000 new tenants registered for private rental accommodation, according to estate agents Countrywide. That was a 24 per cent increase on the previous year.


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