Buy to let investors ride out the storm

Despite interest rates creeping up and rental yields tightening, record levels of established landlords are looking to expand their portfolio as they remain committed to buy to let as a long term investment.

A survey carried out by the Homebuyer Show (02-04 March, ExCel, London) reveals Experts at the Homebuyer Show stress that with property prices at record levels, interest rates rising and rental yields falling back, buy to let is not an investment option for making a ‘quick buck’. However, for investors looking to the long term, both the capital value of the property and the rental income are likely to go up, making buy to let a balanced investment.

Simon Zutshi, Founder of Property Investors Network, who will be exhibiting and speaking at the Homebuyer Show comments: “The key thing to remember is that buy to let is a long term investment. You should not get into property investment looking for a short-term gain. With the market tightening, it is vital that investors exercise caution and do their research. Investors should ensure that the cost of borrowing is met by rental income. However, buy to let still offers excellent returns. There will always remain a high demand for rental accommodation with increased immigration, a growing population and renting remaining a popular lifestyle option. And, although property prices are stabilising now, the average value will definitely continue to rise in the long term.”