The buy-to-let craze is not letting up, according to new figures.  Property investors are still buying properties in the UK, despite the fact that they pay 1m pounds in London, and 300,000 pounds outside, for a standard property.  Five interest rate hikes have not dulled the UK’s reputation as a hot place to invest.  Even with a 60% homeownership rate, good homes, that are managed property, are renting quickly.

Property is still renting for more than the mortgage payment, making the UK a relatively low-risk investment market.  Foreign investors look to the strong economy, immigration, and the UK adult’s passion for homeownership as factors that promise at least another decade of strong growth in the housing market.

Many UK homeowners are selling their older homes, which have increased in value 30% in the last few years.  New homes are only increasing 12% in value, meaning that many investors are looking at older homes as the foundation of their investment.  This flies in the face of many analysts’ beliefs - many are blaming the buy-to-let investors for keeping first-time buyers off the property ladder by snapping up cheap properties in the starter-home market.

However, only 8% of current home loans are held by buy-to-let investors.  This is a stark drop in the number of new landlords that some media outlets are claiming. While many buy-to-let investors are taking out personal loans and mortgages to invest in their properties, others are releasing equity from their current homes, in the form of a re-mortgage.  This is increasing the risk, but is letting more people use property to supplement their pension incomes.