Buy to let is booming

Published: March 10, 2008

The UK buy-to-let market is booming, according to the latest figures from Your Move.

The firm has revealed a 21 per cent increase in the number of leases commencing in January and February, compared to 12 months earlier.

It is likely that the boom is largely down to increased demand for rented accommodation, which has come about as a result of the global credit crunch.

David Newnes, managing director of Your Move, said that he expects the boom to continue for some time.

"Squeezed credit and volatile mortgage rates have contributed to an increased demand for rental accommodation," he commented.

"The demand is definitely there. The private rented sector is the out-and-out beneficiary of the liquidity squeeze.

"Not only do buyers have less access to credit, but those that can get it have been spooked by the negative sentiment surrounding house prices. Landlords are cleaning up," continued Mr Newnes.

Paragon recently revealed that rental yields, rents and total returns all increased in December.