Rock-bottom rates, rising rents and sliding house prices spur new buy-to-let boom
Rock-bottom interest rates, soaring rents and sliding house prices are encouraging more would-be investors to consider a buy-to-let property.
A slew of cut-price mortgage deals is tempting many to take the plunge into the market. But further house price falls could hammer unwary investors unless they are prepared to invest for the long term.
Experts warn that if landlords fail to pick the right mortgage or choose the wrong part of the country to buy their property, they could find themselves severely out of pocket.
Peter Gettins, of broker London & Country, says: ‘With first-time buyers struggling terribly, there’s increasing demand for rental properties and, as a result, rents are increasing while mortgage rates are at historic lows.
‘With such low costs and high demand, buy-to-let presents an attractive prospect.
‘But prospective landlords need to go in with their eyes open and understand all the costs and risks. Even in a period of high demand, it’s important to understand the local market.’
Read the full story at This is Money
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