Cost concerns prevent buy-to-let investment

Posted: 23 May 2007 11:01:50 GMT

Concerns over costs are stopping many people from entering in to the buy-to-let market, a recent study suggests.

Concerns over costs are stopping many people from entering in to the buy-to-let market, a recent study suggests.

According to a survey carried out by The Property Investment Market (TPIM), nearly three quarters (72 per cent) of hopeful investors cite cost concerns as their reason for not investing in buy-to-let.

Stephen Kenny, the chief executive of TPIM, said that such worries could mean that many will miss out on the obvious benefits of such investments.

"Novice buy-to-let investors are losing out on their chance to capitalise on house price growth, for fear of taking on a huge financial commitment that will bring them years of hassles, potentially outweighing any gains," he said.

Responsibilities for the upkeep of properties, and potentially difficult tenants were also cited as off-putting factors for many would-be investors, the research found.

"Traditional buy-to-let has a lot of stresses involved with it, and these can be very off putting especially if you are only doing it part time rather than being a professional property investor," Mr Kenny added.

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