New landlords warned not to expect short-term gains

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People looking for short-term profits should not become landlords and invest in the buy-to-let market, an industry expert has said.

A recent Arla report confirmed that the vast majority of landlords said that they were interested in long-term gains and John Charcol spokesperson Ray Boulger added that the current housing market situation means that short-term profits are highly unlikely.

"If you are already in the market, there is no point in coming out; but if I was thinking of buying now, I wouldn't rush in to it," Mr Boulger added.

"Professional investors are aware that property prices don't just go up forever, but some of the amateurs have been sucked in on the basis that we've had 12 years of property prices rising and they perhaps haven't factored in that that's not going to happen forever.

"As long as you expect the return to be good over the long-term, then you accept that."

Arla's study also found that 90 per cent of landlords would not get out of the market if house prices began to slide.

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