Buy-to-let investors enjoy record rental growth

A new survey released by the Royal Institution of Chartered Surveyors (Rics) claims that the rental sector is enjoying record levels of growth.

Buy-to-let mortgage investors will be pleased to hear about the latest study, which finds that factors such as deteriorating accessibility, tight supply and a sluggish housing market are keeping prospective homebuyers off the property ladder.

The findings revealed that 29 per cent more chartered surveyors reported a rise rather than a fall in tenant lettings in the second quarter of 2007, as compared with 15 per cent in the first three months.

Rics spokesperson Jeremy Leaf commented: "Current economic uncertainty has created an ideal platform for buy-to-let investors to cash in on rising rental levels. Many would-be buyers have decided to wait and see how the interest rate cycle will affect the market."

It's not all good news for landlords however, as the report points out that the burden of high interest rates is also taking its toll on mortgage rates paid by buy-to-let investors.

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