Top tips for Britain's gung-ho buy-to-let investors

Tuesday, 17 October 2006 12:00 AM

Buy-to-let property investors are bold, quick to buy and like to keep their purchase close to home, a new report reveals.

Almost four in ten buy-to-let buyers bought their last property within a few hours of viewing, with half of those making an offer actually during the viewing. More alarmingly, four per cent of buy-to-let buyers make their offer without even seeing the property.

The report into landlord behaviour, commissioned by independent mortgage broker John Charcol, also finds almost a third become landlords almost by accident.

More than one in five buy-to-let investors moved into the market as they decided to rent a property they already owned, and one in ten became landlords when they inherited a property and decided to rent rather than sell.

However, when it comes to how successful the buy-to-let is, 85 per cent of investors cite location as most important for success, with 56 per cent of landlords investing within ten miles of their home.

Ray Boulger, of John Charcol, commented: "For any property buyer, location is a crucial factor as it dictates both value, rentability and saleability.

"For most landlords this not only means considering tenants' expectations in terms of proximity to local amenities and transport links but also sticking to what they know best - the local market - and then buying close to home. Having rental properties near your home can be practical as being on hand to manage their properties could mean cutting costs on managing agents."

When it comes to the type of tenant buy-to-let investors want to attract, a quarter said family homes were likely to be the soundest investment over the next five years, with 60 per cent saying flats for young professionals were best, and one in ten banking on studio flats.

"Studio flats continue to be the least popular rental property, whereas flats for young professionals look set to remain a favourite among buy to let investors," said Mr Boulger.

"However, landlords are becoming increasingly interested in properties that are suitable to rent to families. In our experience, some families are selling their homes before completing on a new property and so this, along with international families coming to the UK, will have contributed to this demand."

John Charcol's most important things to look for in a buy-to-let investment

1 - Location

2 - Potential for growth in value

3 - Saleability

4 - Condition

5 - Number of bedrooms

6 - Local amenities

7 - Neighbouring properties

8 - Security

9 - Garden

10 - Number of bathrooms

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• uk property news