Renting is cheaper than buying

Buy-to-let looks set to thrive as the Association of Residential Lettings Agents (Arla) points out that renting a property is cheaper than buying.

The organisation says that the associated costs of purchasing a home mean that many young people simply cannot afford to get onto the property ladder.

With this in mind, more and more potential buyers are turning to rental properties and this can only be a good thing for buy-to-let investors.

"Buying can be more expensive than renting particularly when you start taking into account transaction costs, things like stamp duties and solicitors costs," said Malcolm Harrison from Arla.

"Then you've got to furnish it and then maintain the property. And so that has always had an effect as well. It is more than likely that over the years, renting has been the cheaper and more flexible option for many people.

"Quite a lot of people, even if they can afford to buy, are at a stage in their life where they want the flexible option of renting, and they take it because they can get good quality," he added.

Arla recently revealed that landlords in the UK are charging record rents as costs and demand for rented accommodation rise.

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