22
Feb
'More growth' in buy-to-let
Buy-to-let investors are likely to see further growth in average
rental returns this year, the Association of Residential Letting
Agents has stated.
A spokesman at the organisation noted that the demand for rented
properties has risen in recent times, something that is down to a
number of factors, including "softening" in house prices.
Furthermore, the recent drops in the base rate of interest will not
affect the market too greatly, Malcolm Harrison claimed, because of
the "low lend to buy rate" taken on by investors.
"What he works to is what the people who reinvest in rental
valuation will give him in terms of actual rent. If that rent's
enough he'll have a fix," he remarked.
It therefore does not really matter which way interest rates go, Mr
Harrison said.
Birmingham Midshires recently stated that returns on average for
buy-to-let investors jumped to 16.3 per cent in December 2007,
compared with the year before.