Expert predicts increase in buy-to-let investors
There is likely to be an increase in the number of people investing in buy-to-let properties over the coming months as they look to take advantage of the promising returns on offer.
That is the opinion of independent property industry expert Malcolm Harrison, who says that property has a particular allure for those looking for a safe and stable investment following the financial crisis.
"There will be [an increase in the number of new landlords] because there will be people whose careers and ability to make money has not been impinged by the crash. They will be looking for investments and the advantage of property investment is the same as it always was," he said.
"It is something that they can control and they are not handing their money over to a fund manager; if you are a property investor or a buy-to-let investor, then you know exactly what is going on as you can see in it with your own eyes."
However, Mr Harrison advised that potential new landlords should see buy-to-let as a long-term investment, not as a way of making a quick profit.
"It is a long-term investment and the people who got burnt before the crash were those who saw it as a speculative investment; they thought they could buy, let it for a couple of years and then flog it," he said.
"The mature investor recognises that a buy-to-let investment is for at least ten years if not more."
Landlords are also currently enjoying rising rental yields thanks to rapidly increasing tenant demand, which could also help spur investments in buy-to-let properties.
According to recently released figures from the Department for Communities and Local Government, the number of private renters soared from 2.15 million in 2003-04 to 3.35 million in 2009-10, a rise of 55 per cent.
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