Increasing numbers of people in their 20s and 30s are turning to buy-to-let properties as an alternative to a pension or a way to get on to the housing ladder, research showed.

Bradford & Bingley Letting Agents said just below a third of investment landlords were now aged between 26 and 35, compared with 45 per cent who were aged between 36 and 50 and 24 per cent who were over 50.

The group said younger landlords were drawn to the market as they saw property as a sound long-term investment.

However, it added they were also using buy-to-let as a way to get on to the property ladder, buying a property in a cheaper area and renting it out so they could still cash in on house price rises.

Just below two thirds of landlords across all age groups said they let out a property as an investment, with just eight per cent renting out their own home due to relocating because of work, and five per cent renting their property because they had been unable to sell it.

About 68 per cent of landlords said they preferred to own a property away from where they lived and have it managed by an agent.

The research also found the majority of investment landlords owned a single property, which was most likely to be a modern two-bedroom house on which they charged an average rent of £662 a month.

It added average rents ranged from £477 a month in the North-West to about £1,036 in the South-East.

Flats were also popular with 41 per cent of landlords renting out a two-bedroom apartment but just three per cent opted for a bungalow and four per cent for a cottage.

Only 30 per cent of landlords let out fully or partly-furnished apartments, while 37 per cent left their properties unfurnished and 33 per cent provided only fridges and cookers.

Wednesday May 19, 2004