Landlords looking to expand portfolios need to 'do their sums'

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While expanding a buy-to-let portfolio still represents an attractive prospect, a landlord needs to carefully consider whether an additional investment makes financial sense, an expert has warned.

Landlords need to consider other issues apart from the rental income and mortgage repayments associated with a potential portfolio addition, explained Neil Johnson, PR and publicity manager at the Building Societies Association.

In particular he highlighted the importance of considering variables such as tax and building maintenance costs.

"There is still a market out there for it, but clearly if you are not careful you are going to get your fingers burnt," Mr Johnson stated.

"The important thing to do is to take account of all the other costs too, rather than just looking at the mortgage coming out," he added.

Figures published recently by Rics revealed that a buy-to-let landlord would now need to lay down an average of £65,000 to add a residential letting to their portfolio.

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