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Buy To Let Property Must Be A Long Term Investment
Landlords putting their money into buy-to-let property should see their investment as long term, according to one expert in the sector.
Ian Potter, operations manager at the Association of Residential Letting Agents, said those looking to make a "quick buck" were burnt during the credit crunch when mortgage lending tightened and the market crashed, and people should learn from their mistakes.
Mr Potter said the short-term strategy employed before the economic downturn will simply not work in the current climate.
"A landlord coming into it today should be looking at it with a view to a ten to 15-year term," he added.
Savills reported encouraging figures for private rented accommodation in its Residential Investment Bulletin – for Autumn 2011, suggesting opportunities for buy-to-let investment.
The report forecast a 20.5 per cent increase in residential rental growth over the next five years in the UK, with a one million increase in the number of private rented sector households between 2009/10 and 2015/16.
On current forecasts, Savills sees a 6.1 per cent average gross yield for 2016.
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Article date: 12/7/2011 12:00:00 AM