LETTINGS NEWS: More evidence that buy to let rental sector is set to grow stronger
The rental market across the country is likely to grow significantly in the next decade because of demographic factors and high house prices for younger buyers, making buy to let investment increasingly attractive.
Data from the Resolution Foundation think-tank shows that in 1998 some 23 per cent of home owners were aged 65 or above, but that proportion today is 32 per cent – and much higher in traditional retirement areas like East Devon.
In contrast, young people aged 16 to 34 account for just 10 per cent of home owners today, down from 19 per cent in 1998. Partly this is down to high prices and large deposits which younger people cannot afford, and partly this is because growing numbers of older owners sell less frequently than before.
The only alternative for many younger residents in all areas of the country is to rent, although the think-tank says this is not necessarily a bad thing – and that many young tenants prefer the flexibility of not having a mortgage.