Press Release Summary = Buy-to-let investment in the UK has been promoted by many industry insiders as a lucrative option, with escalating house prices and high demand for rental accommodation creating a buoyant environment for landlords.
Press Release Body = Buy-to-let investment in the UK has been promoted by many industry insiders as a lucrative option, with escalating house prices and high demand for rental accommodation creating a buoyant environment for landlords.
The Council of Mortgage Lenders recently reported that the buy-to-let sector in the UK outperformed the rest of the mortgage market in the first half of 2007. It suggested that a strong rental market, higher rents and shorter void periods contributed to the growth in the sector.
Paragon Mortgages chief executive Nigel Terrington also commented that a growing need for \"decent, affordable accommodation\" was boosting the buy-to-let market. He said landlords are helping to \"fill the housing gap\" created by demand for flexible housing choices and an atmosphere of high interest rates that are creating affordability problems for many potential homeowners.
The June buy-to-let index by Paragon noted an increase of 2.2 per cent in rental incomes from the previous month, which resulted in a 4.2 per cent rise over the quarter.
But potential investors should guard against being blinded by buy-to-let\'s positive performance and a healthy outlook. While impressive returns are certainly a possibility, wannabe landlords should approach their investment with the necessary caution, it has been suggested.
Malcolm Harrison, a spokesperson for the Association of Residential Letting Agents, commented that prospective buyers need to \"look around and still buy cautiously\". He said: \"If you are buying to let or buying to invest you just have to check out the area carefully. Take all the advice you can and insure that you\'re doing sums correctly. Go to wherever there is a lot of economic activity.\"
He reiterated the need for potential investors to be careful about their purchase and ensure they investigate the local market thoroughly. Mr Harrison suggested talking to letting agents who will be able to supply information on which type of property is most successful in a certain area for buy-to-let investment.
Elizabeth Brogan, senior policy officer at the National Landlords Association, advised buy-to-let investors to join a \"reputable\" industry association so they have access to advice. Alternatively, she said buy-to-let investors should consult the wealth of relevant information available, such as independent guides to renting and letting and government publications on housing and tenancy.
So it would appear that for the cautious investor, the potential for gains is a very real prospect. Andy Wiggans, director of mortgages at Bradford & Bingley, said those \"at the heart of the market\" believe the buy-to-let sector remains strong.
He said: \"Higher interest rates may have an effect on cash flow but they have no impact on long-term capital returns.\"
2022
