Buy-to-let mortgage market to grow in the near future?

Figures suggest that tenant demand for rented properties is rising.

The number of buy-to-let mortgage packages being sold in the UK may be set to rise in the near future, if new figures are to be believed.

According to Paragon Group's Private Rented Sector Trends report, demand from tenants for rented properties continued to grow throughout the third quarter of the year - which may lead to landlords seeking more home credit deals such as tracker mortgages in the coming months.

The study shows that 36 per cent of landlords experienced higher interest in their homes during this three-month period, while, in comparison, six per cent indicated that demand for their properties had subsided.

In addition, it seems that confidence in the sector with regards to the future is high, as 42 per cent of owners looking to rent out their assets believe that tenant demand will be stronger again in one year's time.

People may be eager to rent after Selwyn Lim of Mouseprice revealed that there is currently a "huge disparity" between asking prices for houses and what purchasers are actually willing to pay.

By Kate Guthrie

which4u.co.uk