Buy-to-let investors still on the up

Tuesday, 13 February 2007 12:00 AM

The number of people looking to invest in a buy-to-let property is continuing to rise despite higher interest rates and tighter rental yields, a new survey reveals.

Research by the Homebuyer Show finds 47 per cent of landlords are looking to expand their portfolio, up from 40 per cent last year.

Novice investors are also increasing, with the survey finding 17 per cent of people who did not have a buy-to-let property said they would like to enter the market.

But experts at the Homebuyer Show are warning the high cost of properties, three rises in interest rates since last August and a falling back in rental yield, buy-to-let is not a short-term money spinner.

"The key thing to remember is that buy to let is a long term investment," advised Simon Zutshi, founder of Property Investors Network, an exhibitor at the Homebuyer Show.

"You should not get into property investment looking for a short-term gain. With the market tightening, it is vital that investors exercise caution and do their research.

"Investors should ensure that the cost of borrowing is met by rental income. However, buy-to-let still offers excellent returns. There will always remain a high demand for rental accommodation with increased immigration, a growing population and renting remaining a popular lifestyle option.

"And, although property prices are stabilising now, the average value will definitely continue to rise in the long term."

Tags:
• uk property news