A third of UK adults aspire to own a buy-to-let property, despite suggestions the market is on the decline, a study from Market Financial Solutions has found.
The research, which surveyed 2,000 UK adults, found 33 per cent of respondents want to own a BTL property in the future, a figure which rises to 54 per cent among those aged 18-34 and falls to 14 per cent among those aged over 55.
Market Financial Solutions CEO, Paresh Raja, said: “It has become popular over the past decade to bash buy-to-let investing as being increasingly unappealing. Clearly, however, that is far from the case.
“The rise in house prices and borrowing costs, coupled with tighter rules and regulation in the rental market, has undoubtedly caused challenges for both current and prospective landlords.”
Raja added that, while he is sure this will have given some people reason to question whether BTL ownership is the right route for them, the survey results show the UK has an interest in bricks and mortar.
“Many people aspire to homeownership and property investment. The stability of the market, along with the opportunity for the value of the asset to rise in the longer-term alongside a rental income, all contribute to this,” he continued.
“Indeed, if BTL mortgage rates do come down in the coming months as expected, we may well see more first-time landlords entering the market.”
More generally, 60 per cent believe property investment is an effective means of building long-term wealth, with 37 per cent saying they would rather invest in a BTL property than stocks and shares.
Just over half (53 per cent) agreed with the statement that “real estate is a safe and stable asset to invest in”.
The study also showed that, if respondents were to win £1mn in the lottery, 58 per cent would use some or all of it to buy property.
This was particularly true of UK adults aged 18-34, with the figure rising to 68 per cent among this younger demographic.
However, of those aged 18-34, 57 per cent said they resent the fact it is much harder to invest in BTL properties today than it was for previous generations due to the rise in house prices.
tom.dunstan@ft.com
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