Press Release Summary: Those considering investing in the buy-to-let sector, or expanding their existing portfolios, may be forgiven for feeling slightly confused at much of what they have read of late about the industry.
Press Release Body: Those considering investing in the buy-to-let sector, or expanding their existing portfolios, may be forgiven for feeling slightly confused at much of what they have read of late about the industry.
On the one hand, there have been negative stories of investors getting their fingers burnt and much waxing apocalyptic about the supposedly dire future of the industry as the overall property market slows down and certain areas experience oversupply of flats and other properties. On the other, figures are consistently showing that returns are up and rental demand is high as the very people avoiding trying to buy in the present climate seek to rent instead. One suggests the game is up for buy-to-let, while the other suggests that there is in fact plenty of cause for optimism.
The answer which perhaps squares this circle is for investors to be careful and check out all the relevant facts. Those who do can succeed well, those who don\'t will be the ones who fall by the wayside.
Making this point, Neil Johnson, PR and policy manager for the Building Societies Association, said: \"People should make sure before they go out and buy that they have done their sums and they know that what they are buying makes sense. There is still a market out there for it, but clearly if you are not careful you are going to get your fingers burnt.\"
Noting that there is a significant market for rental accommodation at the moment, Mr Johnson warned: \"The important thing to do is to take account of all the other costs too, rather than just looking at the mortgage coming out,\" listing tax and maintenance as issues requiring particular attention.
Sounding an upbeat note, Mr Johnson concluded that research by the Building Societies Association showed that many landlords would expand their portfolios if house prices fell. \"That would certainly imply that in certain areas of the country people do see that there is a future for buy to let,\" he commented.
The same finding has emerged from new research by Bradford & Bingley. This showed that 86 per cent of landlords anticipated either increasing the size of their portfolios or at least not reducing them. Findings about rental yields were even better; 95 per cent said they were positive about the prospects for them, which currently stand at an average of 5.72 per cent.
For all the negative publicity, the 3,800 landlords polled by the building society seemed largely unconcerned, with 60 per cent describing themselves as categorically undaunted by such rumours.
These are the people who should know, Jeremy Law, head of buy-to-let for Bradford & Bingley said, describing them as being \"those who are at the coalface of the buy-to-let market\".
He concluded: \"The results from our landlord confidence survey, together with the economic indicators surrounding buy-to-let, reveal that the sector is most definitely here to stay and will remain strong.\"
In today\'s world Property investment is an excellent investment option especially investment in UK
2022
