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Younger generation keen to join the 'buy-to-let party'

Almost half of 18-39 year-olds believe that purchasing a buy-to-let property is the best investment opportunity available at the moment, according to research by online letting agent Rentify.

Some 36% of those surveyed also said that they felt that April's pension freedoms – which allow people to cash-in on their pension pots early – are 'unfair' on the younger generations.

Rentify also claims that there are approximately 4 million 18-39 year-olds actively trying to purchase a buy-to-let investment in the UK.

The firm draws attention to a recent study which claimed that every £1 invested in buy-to-let property in 1996 has grown in value by 1200% and it is the prospects of these returns which is capturing the attention of younger investors.

"The property market seems dominated by two or three main 'types' of homeowners, renters and investors." says George Spencer, CEO of Rentify. "The fact that 49% of first time buyers would consider investing in buy-to-lets is fantastic and shows that there are more options out there and more people who want to get on the ladder."

James Cooper – a 26-year-old London resident – is one of these 'young buy-to-letters'. Instead of buying a home for himself, he used his first step on the housing ladder to invest in a buy-to-let property.

"My rationale for choosing the option of buy-to-let comprised a few key points: Borrowing for the purpose of investing in a buy-to-let meant I was able to borrow more capital based on the market rental value of the property. It also means that I can leave my current job, say if I want to go travelling for six months, without the need to re-approach the bank for a change in mortgage that could incur some hefty penalty fees," says Cooper.

"Buy-to-let mortgages allow you to obtain a fixed rate over a longer period of time than your typical home-buyer mortgage; Based on my research approximately double the period of time on average. Through a buy-to-let I was able to fix down a very good rate over a period of 5 years," he adds.

"My experience from buy-to-let has been very positive so far and I plan on investing in more properties in the future in this way."

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