Buy-to-let 'far from being dead'

News Category: Industry News

This article was brought to you by Rentman the premium property management system.

The buy-to-let industry is in a funny shape but is far from being dead, it has been suggested.

An article at investment advice website Citywire commented that for some landlords, the current property market is "something to be excited about".

Cash-rich investors and property buyers who are finding bargains while house prices are low, and are able to keep their portfolio operational over the long term, are enjoying good yields, the article noted.

However, landlords should consider rental insurance to avoid "being caught with their pants down when a tenant suffers a sudden loss of income", it added.

Those who suffer this consequence could find themselves competing with frustrated sellers who have recently entered the private-rented sector, the report suggested.

Average monthly rent fell from £950 in May last year to £795 last month, according to data published by property website Globrix.

However, a recent study by the Intermediary Mortgage Lenders Association found that the rental sector was benefitting as many struggling first-time buyers were opting to rent after being unable to get a mortgage.

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