Buy-to-let a growth market

The buy-to-let market is young and it needs time to mature but it does sell itself, said one property expert today.

Researcher Ed Stansfield from consultancy firm Capital Economics says that buy-to-let mortgages have seen massive growth over the past few years with rent received being a more attractive return on investment than other financial options to landlords.

Figures from the Council of Mortgage Lenders reveal that there be short-term stagnation of growth due to interest rate rises which will temper landlords'' enthusiasm for investing.

Mr Stansfield said: "We are still of the opinion that interest rates will go up again probably in March or maybe in April and the second half of 2007 will herald a slower growth in buy-to-let lending."

He added that though a young market, previously residential landlords did pretty much the same thing although they had mortgages which were not classified separately in the mortgage lending statistic.

Thus the market has become a lot more trackable since landlords shifted towards special buy-to-let mortgages.


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