THE buy to let market in York is booming as investors continue to plough their cash into bricks and mortar, according to a new survey.

The report, by UCB Home Loans, highlights York as one of six cities across the country where more and more people are buying properties to rent out.

The report says the market remains buoyant in York, and investors from the South, where the market has passed its peak, are investing in the city.

Charles Reed, managing director of UCB Home Loans, said: "For many people investing in property which can then be rented out is becoming a popular alternative to pensions and other forms of investment.

"Hardly anyone, apart from professional landlords, invested in rental properties a few years ago, but now it's becoming the norm for an increasing number of ordinary people."

Peter Moody, partner in Hudson Moody estate agents in York, said one of the reasons for this was that property owning had proved more reliable than other types of investments and mortgages were more accessible.

He said: "Bricks and mortar has performed much better than other investments such as the stock market.

"The other big thing that has changed is the change in mortgages. Five years ago it was hard to get a buy-to-let mortgage as you had to pay out a lot more money."

Kevin Hollinrake, managing director of Hunters, in York, said the success of businesses in the city was also a contributing factor.

He said: "Buy-to-let in York is doing extremely well and the reason behind it is principally employment.

"Most employment is based on the service industry and York is doing well in areas like insurance.

"Generally, it is people who have £15,000 to £20,000 in savings which they would have put into the stock market, but, because of what is happening there, they are looking some where else."

The report highlights other reasons including an increasing number of would-be first-time buyers who are now renting, along with a growing trend for people to stay single and rent.

Updated: 11:36 Wednesday, August 06, 2003