Landlords advised to avoid buying flats

News Category: Industry News

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Landlords have been told to think twice about buying flats by two buy-to-let experts.

Fergus and Judith Wilson, who have a portfolio of more than 700 properties, told the Daily Telegraph that, outside of London, two- or three-bedroom homes were better than flats and larger properties.

Mr Wilson explained that the majority of tenants want to leave one-bedroom starter homes within six months and added that it does not make financial sense for tenants to rent four-bedroom homes.

"Why would anyone pay £1,300 a month in rent when they could get a mortgage for less?" he said.

He stated that although the balance has been shifted by "rock-bottom rates", it should still generally be cheaper for tenants to rent rather than buy.

Only 12 per cent of landlords planning to invest in new property in the next six months are considering purchasing flats, according to recent research from Ludlow Thompson letting agents reported by Residential Landlord.

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