Buy-to-let investors 'must do their homework'
Buy-to-let can still offer a "sound long-term investment" despite interest rate rises, provided that landlords go about it in the right way, one expert has claimed.
Editor of Business Moneyfacts Lee Tillcock said that it was important for potential investors to do their homework, making sure that they factor in the cost of complying with new rentals legislation introduced last year and finding the most suitable finance option for them. <
Keeping properties rented was the key to success in the sector, he said, but this need not be difficult as recent Association of Residential Letting Agents figures showed that tenants were staying in one property for longer - for an average of more than 17 months.
Mr Tillcock also predicted a positive outlook for the sector, with the number of one-person households set to grow by 53 per cent by 2026 and 3.5 million new households needed by 2021 according to Town and Country Planning Association data.
He advised: "Whilst house prices may not continue to offer double-digit growth, the suggestion that prices will fall markedly does not fit the supply and demand model.
"A section of the UK population continues either to struggle to afford to purchase their own property or simply prefer the flexible lifestyle of renting, as a result of which landlords and their properties will remain increasingly sought after."
Survey reveals continued faith in buy-to-let
A new survey has shed light on what has been dubbed the British "love affair" with residential property investment.
Almost a third (32 per cent) of private investors questioned by New Star said that they believed that buy-to-let would provide the best investment returns in 2007.
This was a 33 per cent increase on the same research conducted in 2005, highlighting the growing popularity of buy-to-let.
While 32 per cent of investors said that they did not have a view on what the best-performing asset class would be in 2007, just 15 per cent opted for commercial property, followed by six per cent who chose UK equities and five per cent who chose bonds.
However, while the survey results showed "the British public's continued love affair with buy-to-let residential property", managing director of UK retail sales and marketing at New Star Phil Wagstaff said that it was always best to seek professional advice.
He said: "New Star always recommends that investors seek professional advice to help find appropriate investments for their individual circumstances and the current investment climate."
Buy To Let Places
Rental income has dropped in MALPAS
Pockets do exist in NEWBIGGINBYTHESEA
Letting property can be time consuming. Look out for the right property in PENRITH
Landlords do invest in RHYL
We have no data but have certainly had enquiries from landlords wanting to buy to let in SHERBORNE
We have no data but have certainly had enquiries from landlords wanting to buy to let in STONEHAVEN
We have no data but have certainly had enquiries from landlords wanting to buy to let in TORPOINT
We have no data but have certainly had enquiries from landlords wanting to buy to let in WESTBURYONSEVERN
Buy To Let data is not available in ABERYSTWYTH
Buy To Let data is not available in BALLYCASTLE
Buy To Let data is not available in BIRMINGHAM
Buy To Let data is not available in BRYNTEG
Buy To Let flats can be found in CHELMSFORD
Buy To Let Property data is not available in CREWE
Buy To Let Property data is not available in DUNFERMLINE
Buy To Let Property data is not available in FORTAUGUSTUS
Buy To Let Property data is not available in HARTLEPOOL
Buy To Let Property data is not available in IBSTOCK
Expectations are fair in KINGSTONUPONTHAMES
UK landlords have invested in LLANBEDRGOCH
rental income has dropped in MALMESBURY
Pockets do exist in NEWARK
Letting property can be time consuming. Look out for the right property in PENRHYNDEUDRAETH
Landlords do invest in RHOSNEIGR
We have no data but have certainly had enquiries from landlords wanting to buy to let in SHEPTONMALLET
We have no data but have certainly had enquiries from landlords wanting to buy to let in STONE
We have no data but have certainly had enquiries from landlords wanting to buy to let in TONYPANDY
We have no data but have certainly had enquiries from landlords wanting to buy to let in WESTBURY
Buy To Let data is not available in AMBLESIDE
Buy To Let data is not available in BARROWUPONHUMBER
Buy To Let data is not available in BOOTLE
Buy To Let data is not available in BURYSTEDMUNDS
Buy To Let Property data is not available in CLACTON-ON-SEA
Buy To Let Property data is not available in DALTONINFURNESS
Buy To Let Property data is not available in EGREMONT
Buy To Let Property data is not available in GLASTONBURY
Buy To Let Property data is not available in HENFIELD
Buying property can be difficult at times, given the competition from other landlords. Do your homework in ISLEOFCOLONSAY
Good idea to investigate property in LANCING
Some young couples prefer to rent than buy in LLANSANTFFRAID
Property investors can find various properties for letting in MEIFOD
Not all property will make a good buy to let in NEWTONSTEWART
Lending will be based on rental income predictions so make the figures stack when buying in PONTEFRACT
Landlords continue to buy in ROYBRIDGE
We have no data but have certainly had enquiries from landlords wanting to buy to let in SOUTHALL
We have no data but have certainly had enquiries from landlords wanting to buy to let in SUTTON
We have no data but have certainly had enquiries from landlords wanting to buy to let in ULCEBY
We have no data but have certainly had enquiries from landlords wanting to buy to let in WHITLEYBAY
Buy To Let data is not available in ASHBOURNE
Buy To Let data is not available in BEITH
Buy To Let data is not available in BRENTFORD
Buy To Let can be profitable in CANNOCK
Buy To Let Property data is not available in COLERAINE
Buy To Let Property data is not available in DINGWALL
Buy To Let Property data is not available in EYEMOUTH
Buy To Let Property data is not available in GRAYS
Buy To Let Property data is not available in HOCKLEY
Buying property investment type of accomodation can be time consuming in IVYBRIDGE
Houses and flats can be good investments. Lookout for both in LEICESTER
Sharers often provide good returns in LOSSIEMOUTH
Property investment is a difficult game, research well before buying in MINEHEAD
New Build flats are not always good investments in OAKHAM
Landlords with experience have bought in PRESCOT
It is always an uphill struggle, so make sure you see a lot of property before buying in SALTCOATS
We have no data but have certainly had enquiries from landlords wanting to buy to let in SPILSBY
We have no data but have certainly had enquiries from landlords wanting to buy to let in TAVISTOCK
We have no data but have certainly had enquiries from landlords wanting to buy to let in WALSINGHAM
We have no data but have certainly had enquiries from landlords wanting to buy to let in WINSCOMBE
Buy To Let data is not available in ABBOTSLANGLEY
Buy To Let data is not available in BADMINTON
Buy To Let data is not available in BIDEFORD
Buy To Let data is not available in BROMLEY
Buy at under market, that’s what many landlords say. We do not know if this applies in CATERHAM
Buy To Let Property data is not available in COWDENBEATH
Buy To Let Property data is not available in DUDLEY
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