Property News Archive
“10 Years of Buy to Let ”
September 2006 marked the 10th anniversary of Buy to Let in the UK. The market has grown exponentially in that time and the types of product available have quickly evolved. These products are now much more flexible and are constantly reacting to changes in the housing and letting market thus fuelling the continued growth of this popular and successful investment alternative.
Increasing demand for private rental property has played a vital role in the development of this sector, due to changing demographics. The comparative figures below illustrate just some of these changes.
| |
1996 |
2006 |
| Number of Buy to Let mortgages outstanding: |
120,500 (1) |
701,900 |
| Buy to Let percentage of total mortgage market: |
3.3% |
8.5% |
| Bank Base Rate: |
6.25% |
4.5% (2) |
| Typical rate charged on Buy to Let mortgage: |
7.25% |
5.25% |
| Maximum loan percentage advanced: |
73% |
85% |
| Average house price January 1st: |
£67,067 |
£191,327 |
| Average age of first-time buyer: |
32 |
34 |
| Total UK population: |
58.1m |
60.2m |
| Total number of undergraduates: |
268,289 |
360,244 |
| Total number of divorces granted: |
157,107 |
167,116 |
| Number of international migrants: |
314,000 |
582,000 (3) |
Sources: Council of Mortgage lenders: UCAS; Office for National Statistics: Land Registry
(1) Figure supplied for 2000 - earliest available
(2) Rate correct at 01/08/06
(3) Figures for 1994 and 2004
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