Landlords can still make a profit

Posted: 21 Nov 2007 10:50:49 GMT

There is still money to be made in the buy-to-let market but investors must do their research first.

There is still money to be made in the buy-to-let market but investors must do their research first.

That is according to the Building Societies' Association (BSA), which points to high demand for rental properties among young people who cannot afford to buy.

But Neil Johnson, PR policy manager at the BSA, said that there is some danger in the market with so called 'dinner party buy-to-letters' investing without having done enough research.

"For professional buy-to-letters, who know what they are doing, there is still money to be made," he advised.

"The danger is what is referred to as 'dinner party buy-to-letters'; the people that find themselves talking to someone at a dinner party who bought ten properties ten years ago and is now worth £3 million, and they think they need to get in on the act.

"There are still people that want to rent and there are still people unable to buy, so while that remains the same there will always be opportunities out there for buy-to-let investors," continued Mr Johnson.

The Council of Mortgage Lenders' senior policy advisor, Rob Thomas, recently announced his belief that the buy-to-let market would remain stable in 2008.

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