12 Jan

Buy to let market 'benefits from fall in home ownership figures'

Buy to let market 'benefits from fall in home ownership figures'

Buy to let owners are benefiting from a drop in the number of people owning properties themselves.

An article in the Observer reported how owner-occupation in the UK fell to 68 per cent in 2010, indicating that more people are choosing to rent properties instead of buying them.

It also said that costs are being pushed up as a result of this increase in demand from tenants and last year saw a rise in rental income for buy to let owners by 20 per cent.

Last month, the Royal Institution of Chartered Surveyors (Rics) Lettings Survey revealed that 39 per cent more surveyors reported seeing a rise in rents in the three months to the end of October 2010.

Jeremy Leaf, a spokesman for Rics, said: "Many have turned to the rental market because they fear further price reductions in the housing [sales] market or they cannot obtain the finance to buy."

The article also noted that the increase in VAT from 17.5 per cent to 20 per cent implemented at the beginning of the month is a "further disincentive to buy" for long-term tenants, saying this will lead to "yet more demand for rental property".  ADNFCR-1222-ID-800338682-ADNFCR

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