The buy to let market in the UK is likely to become more and more in demand. As the housing market here becomes continuously expensive to home buyers, more will require the use of rental properties, which means more demand will be on buy to let property owners.
Yet most property investors do not believe that this will cause a boom within the market. A debate which was held on this week by the Council of Mortgage Lenders director general Michael Coogan helped to showcase what is likely to happen in the coming months.
According to him, they do not expect the market to shrink, but no boom is likely to happen either. Coogan had this to say, as reported by IFAOnline.co.uk. "I think a lot of people will seek rented accommodations while they save the money to buy, but I don't like to think of the market in terms of boom and bust and I expect it to remain steady."
At the same meeting, chief economist for Morgan Stanley David Miles said, "I think net new demand is unlikely to increase, despite the prospects of attractive yields, because capital is likely to depreciate in the short term. However, it's too costly for those already in the market to get out, so I think most current investments will remain."
