Buy to let investment opportunities are on the up after a surge in demand for rented property, a new report shows.
Legal & General Mortgage Club has released a study carried out by buy-to-let mortgage provider Paragon Mortgages. According to the report, the buy-to-let market is recovering from the sharp downturn experienced in 2009, when it plummeted to its lowest level for eight years as new lending shrank by nearly three quarters.
Today, the private rented sector is the only form of housing tenure that is growing. Continued finance restrictions have led to renting proving to be both a necessary and flexible option for many and this trend looks set to continue, Paragon said.
Ben Thompson, managing director Mortgage Club for Legal & General Network, said: “Historically the rental sector was largely ignored by many mortgage and financial advisers. Today, many typical tenants may well be in full-time employment, in their thirties and have started a family. Some tenants also want the flexibility that renting offers and the quality of rental property now available is much better than it once was, thanks to the growing number of private landlords.