Buy to Let Set to Slow

Most advisers say they have seen a rise in their buy to let business in the last two years but around half think there will be a levelling off or even a decrease in the coming months due to higher interest rates and lower rental returns.



Most investors now looked on buy to let as a pension plan and more first time buy to let investors were entering the market despite the rates to returns ratio.

It was considered that buy to let was for capital gain with nine out of ten clients wanting it for pension purposes. Landlords joining the market considered it easy and this was the reason for many not doing as well as they might. Nowadays investments were for long term, around ten years, not a way to earn fast money. It was also stated that new landlords do not consider outgoings, just seeing the money earned this only forces some to sell when faced with big bills for legislation details that must be complied with such as boilers, fire alarms and safety checks.

Interest only deals were the most popular mortgages with buy to let investors but is hoped that tracker mortgages would soon catch up. With the facts of social housing, immigrants, students, single parents and first time buyers unable to buy the need for private landlord