Buy-to-let ‘not right for short-term investors’
People entering the buy-to-let market were today advised that they will face a wait before they can make sizeable gains.
Increased demand for rented accommodation and capital appreciation resulting from rising house prices have helped to make buy-to-let property a popular investment in recent times.
However, conditions will be less favourable for investors in the coming months as the health of the buy-to-let market is closely linked to the situation in the mainstream housing market, according to Ray Boulger of independent mortgage adviser John Charcol.
The residential property market is slowing down and prices are "set to flat-line for a year or so", he continued, so anyone hoping to benefit from short-term capital appreciation should steer clear of buy-to-let investments.
Long-term profits are still available, so there is no reason for existing investors to leave the market, added Mr Boulger.
Recent research by the Association of Residential Letting Agents discovered that just 2.5 per cent of landlords view buy-to-let investments as a way of making short-term capital gains.
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