'Growing number of families turning to rented accommodation'
Family homes to place on the rental market could make a wise UK property investment, figures suggest.
According to data from buy-to-let and commercial mortgage specialist TBMC, the number of families turning to the private-rented sector has soared in recent months, reports myintroducer.com.
"One of the most noticeable trends since the beginning of the year is the growing proportion of families who are renting accommodation. In quarter three, 65 per cent of tenants were families compared with just 41 per cent in quarter one," said the firm's chief executive Andy Young.
"This reflects the continuing difficulties that first time buyers are having getting a mortgage, putting them off purchasing their own home until later on in life. Renting is also a more preferable option for families who want flexibility in terms of where they live."
Meanwhile, TBMC's latest Landlord Profile Tracking Index revealed that now is a good time to invest in buy-to-let properties in general.
In the third quarter of the year, the average UK rent rose to £1,068.25 a month, a £58.38 or 5.78 per cent increase on the previous quarter and over 30 per cent more than the same period last year.
"This is very encouraging news for landlords and demonstrates the growing vitality of the buy-to-let market, as key drivers such as tenant demand remain strong," said Mr Young.
The company's figures suggest that landlords are already beginning to take advantage of this by expanding their portfolios, with remortgaging deals making up a much larger proportion of mortgage offers than in previous quarters.
"During quarter three, 53 per cent of offers were for remortgages, which suggests that existing landlords are looking to release equity in order to expand their portfolios," Mr Young commented.
"Also noteworthy is that around 85 per cent of offers were made to people who are 40 years old or over, compounding the finding that experienced landlords are now remortgaging."
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