Buy to let sector is very "busy" - buy to let mortgages

18 December 2008

Holders of buy to let mortgages may find that the rental sector has become very active recently, one expert has suggested.

According to Paul Sellers, housing policy adviser at the Trades Union Congress (TUC), many people are being "pushed" into the private rental sector through a lack of alternative housing.

He noted that there is less social housing being constructed and the age at which people buy a house is continuing to rise.

"Private renting has become a very crowded sector and is getting very busy as people are moving out and buying at the moment," he stated.

Mr Sellers added that more new homes need to be constructed as there is a shortage currently, with the number of new residential properties completed in 2005 the same as the number built in 1971.

The TUC predicts that three million new homes need to be constructed by 2020 to beat the housing shortage.