Landlords 'hope to maintain control over their investments'
Published: 21-Aug-2007
New landlords are entering the market because of the control they can exercise over their buy-to-let investment, new research shows.
Figures from Mortgage Trust indicate that 32 per cent of new landlords said that retaining control over their investment was a major incentive for opting for buy-to-let.
In January this year, just 28 per cent of landlords cited this reason.
In particular, landlords revealed that they like the fact that they are in the driving seat with their property. They feel that their actions - such as choosing the right area and property type - determine how successful their investment turns out.
John Heron, managing director of Mortgage Trust, commented: "With buy-to-let, landlords are in the driving seat. As financial markets become increasingly volatile, this level of control will become more attractive to investors.
"Investors continue to be attracted to the private rented sector due to the attractive returns - our index indicates that yields have been stable around the six per cent mark for over a year, whilst total returns on a 12 month investment stand around 11 per cent.
"Whilst there is uncertainty in many financial markets at the moment, it is clear that landlords believe buy-to-let remains a solid investment option."
Recently, an industry expert suggested that residential landlords should think about adding properties above shops to their portfolios.