Tuesday, September 26, 2006
Good news for BTL-ers?
Demand for houses and flats in the private rented sector will grow more sharply in the next 15 years than any other part of the housing market, says a new report by Merrill Lynch which could encourage buy-to-let investors to increase their portfolios. Mr Harrison says that landlords buying properties in today's market tend to be in their 40s, with deposits of around 25 to 30 per cent and expecting to own the properties for 16 to18 years before realising a lump sum for retirement. This is seen as a safer option than pensions, and much more flexible. He continued: "Average capital appreciation of bricks and mortar over the past 20 years has been 8.8 per cent per year - this figure takes into account the worst housing crash in living memory between 1991 and 1994."