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Buy-to-let investors getting younger

A recent survey suggests that buy-to-let investors are getting younger. It is a sad and often-reported fact that many young people are struggling to onto the housing ladder. But this does not mean that young people do not recognise the benefits of becoming a buy-to-let investor.

Recent research carried out by the letting agent Rentify suggests that 49% of 18-39 year olds believe that becoming buy-to-let investors represents their best investment opportunity in the UK investment market today. The survey reports that almost four million young investors in this age group are actively looking for buy-to-let property.

Buy-to-let investors have benefited from a booming property market. Reports suggest some have earned returns of up to almost 1,400% per cent since 1996 (with capital growth and returns combined). This makes it easy to understand why people are so keen on becoming buy-to-let investors. It is an investment type that appeals to many people across all age groups, not just the young.

George Spencer of Rentify said: “The fact that 49% of first-time buyers would consider investing in buy-to-lets is fantastic and shows that there are more options out there and more people who want to get on the ladder.”

Buy-to-let investment continues to beat returns on all other mainstream investments, including commercial property, UK government bonds, shares and cash. This trend looks set to continue on the back of soaring demand from private rental sector tenants.

Charlotte Nelson, a Finance Expert at Moneyfacts.co.uk, said: “With high rents and poor savings rates, it’s little wonder that the buy-to-let market is booming.”

With increasing demand from buy-to-let investors, the number of buy-to-let mortgage products has increased to more than 1,000, up from 460 products two years ago, according to Moneyfacts.co.uk.

“The boom in deals has undoubtedly been boosted by providers taking advantage of the new demand from thousands of pensioners making the most of the new pension freedoms,” Nelson added.

Victor Jameson of New View Residential, a Letting Agent in Cambridge, commented: “Our population is increasing rapidly and we need housing that has simply not been built. This is pushing up prices in both sales and residential letting markets. With interest rates set to remain at record lows for the foreseeable future, it’s easy to see why becoming a buy-to-let investor is enjoying this surge in popularity.”

Original Article: www.propertyindustryeye.com

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