Buy to let did boom in 2011 – it’s official!

Buy to let really did boom in 2011 – with the total up 12% on the previous year as 692,766 homes were rented out.

As buy to let rampaged to a new high, home sales dropped back by 12,000 in the year to 769,077.
The trend was for buy to let to increase each quarter through the year – with the third quarter showing the biggest rise of 14.46%.

The data comes from credit rating giant Experian, which has recently launched a new tenant referencing service for landlords.

The firm has analysed home rental and sale statistics for 2011 and identified some trends:
December was the least popular time to market a home, while the summer was the most popular.

• May was busiest for homes coming to the market for sale
• August was the busiest for buy to let – possibly due to students looking for accommodation in university cities at short notice after receiving their exam results
• The biggest increases in the number of buy to let rentals were in Wales and the West Midlands – both up 20% on 2010.

The West Midlands also reported the largest increase of homes for sale – reversing the trend of other regions by rising 12% on 2010.

Rentals are stronger in London, with 20% of all buy to let activity taking place in the capital.

Jonathan Westley, managing director of consumer information services at Experian, said: “This insight shows that homeowners may be using renting as a back-up plan if they are unable to sell or alternatively some may still consider property a long-term investment.

“Being able to paint a picture of movers and get a unique insight into habits and trends is a valuable tool for companies from financial services to utilities.

“Moving house can be a catalyst for a consumer to switch to ensure they are getting the best deal from their suppliers.”