Property demand outstrips supply in the UK, especially in London. This means that many people are obliged to rent rather than buy; hence the buy-to-let market is well established in London. 

Renting for the individual(s) does provide the ability to not commit in the long-term. There is date that indicated that there is a stabilisation in house prices at the moment but letting remains an ever increasing market. London’s population is expected to continue growing at a rate of 35,000 new homes required each year to meet demand. Based on these we can assume that buy to let investors are in a strong position.

According to data released by the Office for National Statistics, mortgage borrowers are paying, on average, over £2,500 more each year than those who rent their homes. Buyers are renting for longer before taking purchasing their first property. Most find it difficult to raise the necessary capital to buy in the short term.

There are some reports that suggest that renting is significantly cheaper than buying, which should come as excellent news to buy to let property investors. Contradicting this however is other data that indicates that the number of first time buyers in London rose to a 16 month high in June. This it seems was influenced by a slowdown in house price inflation and there also seems to have been a correction for the prices of detached houses. In the capital property values in April were only 2.8 percent higher than a year earlier, down from a growth rate of 9.7 per cent in March.