Buy-To-Let On Increase Despite Interest Rate Rises

The buy-to-let property market is still booming, despite higher interest rates, according to the Royal Institution of Chartered Surveyors (RICS).

The Institute suggests that demand for rented property is rising as high property prices are forcing potential home buyers to remain in rented accommodation, the result is that rents are rising at their fastest rate on record.

The balance of surveyors reporting rises in rents over those reporting falls hit 39 per cent, up from 29 per cent in the first quarter. Similarly, the balance of surveyors reporting rising tenant demand was 29 per cent, up from 15 per cent.

In the past three years the number of buy-to-let mortgages in existence has nearly doubled to 939,000 - and they now comprise nearly 10% of all outstanding mortgages. The average weekly rent for a flat in prime central London is now £525 a week, with £215 a week being charged in the South East and £150 in the rest of the UK.

The findings come as the Council of Mortgage Lenders has reported that the number of first time buyers entering the market fell by seven per cent in July.