Buy-to-let offers sound investment
Published On 15 February 2007
Brits will be buoyed by the news that despite massive growth, the buy-to-let market still offers a sound investment. This is the verdict of financial website Moneyfacts, which stated that although recent base rate rises have raised concerns it is worth bearing in mind the opportunities in the sector.
The statement follows yesterday's figures from the Council of Mortgage Lenders showing that investment in the buy-to-let market has increased with 330,000 buy-to-let products taken out in 2006.
Lee Tillcock, Moneyfacts editor, said: "The recent base rate rises have seen concerns raised over the continuing sustainability and profitability of the buy-to-let sector. It is worth remembering that rates are still close to historic lows and that the buy-to-let market still offers a sound long term investment.
"The long term outlook for demand is also positive. According to the housing supply review, there is a deficit of 450,000 houses in the UK which is growing by 120,000 per annum.
"Recent research has reported that the number of one person households or 'living loners' will increase by 53 per cent to 9.9 million by 2026: the resulting increase in the number of flats and converted houses in the future as a result of this will only drive the rental market further."
Many mortgage providers specifically target the buy-to-let market nowadays with tailored products for those looking to try their hand at property investment.
