Young investors keen to crash the buy-to-let party
As many as four million 18 to 39-year-olds are actively trying to purchase a buy-to-let property to cash in on the boom, new research suggests.
Almost half of young people believe that becoming an amateur landlord is the best investment available, according to new research by letting agent Rentify.
Many claim that pension freedoms are unfair on the younger generation because they have given the over-55s a one-off boost in buying power.
Now younger people are keen to jump on the bandwagon by purchasing buy-to-let properties as well.
George Spencer, chief executive 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.”
Growing interest from younger buyers would further fuel demand for buy-to-let, which is already outpacing the UK residential market.
Although there are fears that banks are set to crack down on the amounts landlords can borrow and insist they pass tough new stress tests.
With interest rates on buy-to-let driven to new lows, demand looks set to continue even though Chancellor George Osborne recently limited higher rate tax relief on buy-to-let.