The buy-to-let boom is back as lenders return - Mortgages, Money - The Independent

The buy-to-let boom is back as lenders return - Mortgages, Money - The Independent

One person's misfortune is often another's opportunity: this is perhaps truest in the property market.

Since the crash of 2007-08, millions have been thwarted in their efforts to buy their first homes. A mortgage tap which was flowing at a heady rate was abruptly turned off and has only of late started to flow at a much reduced level. But fewer first-time buyers means more competition for rental properties – particularly in the overcrowded London and the South-east, but now more recently the once moribund northern cities. Rents are rising at close to double digits in many parts and this has brought back the buy-to-let investor. "Undoubtedly, we are seeing the first-time buyer being augmented and indeed supplanted by the buy-to-let investor. This is reflected in the number of providers that have re-entered the market of late," said Ray Boulger, technical director at broker Charcol.