Buy-to-let 'a chance to control financial destiny'
With the current difficulties in securing finance to buy a property and the subdued nature of the housing market, many people in the UK are turning to the flourishing rental sector as an alternative to selling.
While these 'accidental landlords' may have found themselves in the buy-to-let game without really meaning to, they might actually find it is a great way to control their finances.
According to Alan Ward, chairman of the Residential Landlords Association (RLA), this is one of the principal attractions of private-rented sector investment.
"There will always be investors moving in and out of the private rented sector because it enables people to control their financial destiny through investment in housing," he said.
Meanwhile, seasoned property investors looking for a return on capital have been advised to look at buy-to-let in London.
Asked if now is currently a good time to invest in the market, Mr Ward replied: "It depends where you are buying.
"London is still a strong market in terms of capital growth, but the latest RLA research shows most landlords are looking at investment over 15 years," he said.
His comments came after figures from Mortgages for Businesses revealed that soaring tenant demand is continuing to push up rental yields and benefit buy-to-let investors.
Average yields from straightforward vanilla buy-to-let properties have increased to 6.3 per cent, up from 5.8 per cent in the second quarter, it said.
However, more complex buy-to-let homes, such as Houses in Multiple Occupation, produced even better yields, averaging 9.3 per cent in the third quarter.
In addition, the number of buy-to-let mortgage products on the market has also increased.
There are now 508 buy-to-let mortgages available, a rise of 26 per cent compared to the previous quarter.
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