Private landlords increasing

A recent report indicates that the number of private landlords could double to around 2 million in the next 3 years. According to a survey by Mintel, a market research company, 3% of homeowners are currently considering the purchase of another property to rent out by 2010.

Mintel says that population growth and increasing demand for rented accommodation are likely to ensure this market will continue to grow. Only 10% of the 2,000 adults included in the survey said that they would be put off the buy to let market by the prospect of further rises in interest rates.

Landlord and tenant laws were changed 10 years ago so that landlords can be sure they will regain possession of any property let to tenants. This is one factor which has contributed to the rapid rise in this market. In 1999 there were 44,000 new buy to let mortgages, but by 2006 this had increased to 330,000. Last year 9% of all mortgages were buy to let arrangements.

In addition many homeowners now view investing in a second property as a way of saving for their retirement, particularly following high profile problems with some traditional pension schemes in recent years. Of those who already own a second property, 68% think it is a better investment than a pension.

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