Mortgage woes boost buy-to-let market

More evidence has emerged that the buy-to-let market is benefiting from the downturn in the UK property market.

With mortgage approvals falling to their lowest levels in years and analysts warning of a looming house price crash, increasing numbers of Brits are putting off buying their home and opting to rent instead.

Demand for flats to rent in London is said to be at record high levels according to Money Supermarket, with the number of people renting rising by five per cent since last October.

Asked about their motivation for renting property, eleven per cent of respondents told the price comparison website that spiralling mortgage repayment costs were scaring them off the owner occupier market.

London estate agents Foxtons recently said that rented properties in the capital are retaining their appeal despite a slew of recent negative reports about the state of the industry.

News posted on 12th May, 2008