Investors will benefit from decreased speculation

Posted: 14 Nov 2007 11:55:06 GMT

The cost of becoming a buy-to-let landlord is rising but website Property Hawk says that this could be a good thing.

The cost of becoming a buy-to-let landlord is rising but website Property Hawk says that this could be a good thing.

With deposits rising alongside house prices, the Royal Institution of Chartered Surveyors (Rics) recently claimed that the buy-to-let market is inaccessible to many.

However, Property Hawk points out that decreasing affordability will reduce the number of speculative investors entering the market, and this should benefit long-term serious investors.

"What is going to happen is that the speculative froth will be knocked off the buy-to-let market," commented Chris Horne, editor of the website.

"In many ways, that is not a bad thing because it means that the serious long-term investors will be more likely to get property for a reasonable price because the speculative element that has crept in over the last few years will have gone.

"Many new landlords have been forced to overpay for some properties and the speculative froth being knocked off means there will be more value for serious long-term investors. Property investment is all about the long-term," he added.

The Association of Residential Lettings Agents recently revealed that UK landlords are charging record rents due to soaring demand for rented accommodation.

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