Buy to Let Landlords need advice

Advice from brokers will be vital to help landlords maximise their returns in the Buy-to-Let market, according to research from Alliance & Leicester Mortgages.

Housefund.co.uk - 19th February 2008

According to brokers, landlords will continue to turn to them first and foremost for qualified advice (59%), then for exclusive Buy-to-Let deals (20%) and great rates (11%). It is evident that brokers play an important role in helping the Buy-to-Let investor make the right purchase decision to maximise profitability. With the right advice, brokers predict that over a third (33%) of all investor landlords could make an operating profit in 2008 while 43 per cent of professional landlords could achieve a positive net yield.

Mark Blackwell, Director of Intermediary Sales at Alliance & Leicester, said: “Investing in Buy-to-Let properties should be seen as a long term investment. Despite this, brokers expect nearly 80% of landlords to make a positive return on their investment this year.”

According to the research, brokers cite the principal stumbling blocks for the buy to let market as being the fluctuating base rate (32%) and cooling house prices (27%). One in ten of brokers (10%) however, expressed a concern that rising house prices are reducing the rental return on properties, which could cause difficulties when landlords come to re-finance - full article