Buy-to-let market 'is suited to long-haul investors'

News Category: Industry News

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Buy-to-let landlords must look at the rental market as a long-term investment if they are to continue making a profit, it has been warned.

Specialist mortgage lender Paragon said that the era of making quick profits in the buy-to-let market is over, as the credit crunch has made it more difficult for speculative landlords to thrive.

According to The Telegraph, Nigel Terrington, chief executive of Paragon, said: "Short-term players - the type that buy off-plan in city centres - … are not our customers and it's good that they are now out of the market - they just confuse it."

He told the newspaper that career landlords would profit from the credit crunch, which has caused housing market demand to slump and subsequently increased demand for rented accomodation.

Buy-to-let investors will benefit from strong tenant demand and supply shortage, something that will push up rents, Mr Terrington added.

Meanwhile, the National Landlords Association (NLA) has urged property investors in the private rented sector to work together to dispel the myth that rented housing is not as good as owning your own house.

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