This is according to a report, released by Legal & General Mortgage Club and compiled by Paragon Mortgages, giving insight into the shape of the private rented sector (PRS) and buy-to-let market.
According to the report, the buy-to-let market hit its lowest level for eight years in 2009 as the new lending market reduced by nearly three quarters from the sector’s peak. 2010 saw a gradual recovery and today, the PRS is currently the only form of housing tenure that is growing.
This is due to various social and economic factors that continue to influence the housing market.
Renting is proving to be both a necessary and flexible option for many people and this trend looks set to continue for the foreseeable future.
Commenting on the research 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.
“There is also growing evidence to suggest that many of the next generation, the traditional first- time buyer market, are showing a greater propensity to rent than to buy.”
Julian Rance, Paragon Mortgages’ director of sales, added: “This report offers a comprehensive overview of buy-to-let and the private rented sector and explores why it will continue to be important going forward. Government figures show 300,000 households moved into private rented accommodation in 2010 and it is forecast to house nearly one in five households by 2015.”
The report, entitled ‘The UK private rented sector and Buy-to-Let market 2011’ is free to members of the Legal & GeneralMortgageClub on request. Members who request a copy will be invited to attend one of a number of buy-to-let seminars being held by Paragon and Legal & General in June 2011.
