Some buy-to-let investors 'are already losing money'

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While the public remain confident that the UK housing market will remain profitable, some landlords and buy-to-let investors now believe that the sector could be heading for a crash, a new report has suggested.

The Association of Investment Companies (AIC) found that 62 per cent of the general public think that the housing market will continue to increase in value. In contrast, just 44 per cent of landlords and investors think that house prices will rise in the future.

Nearly half (48 per cent) of the investors and landlords that were questioned thought that the UK housing market would either stagnate or fall in value in the coming years.

In fact, seven per cent of the public who have buy-to-let property, and six per cent of landlords, reported that they are already "losing money" on their investment.

"There is increasing evidence that the housing market is slowing down following five rate rises and the recent credit crunch," commented Annabel Brodie-Smith, communications director at AIC.

"This research demonstrates that the rate rises are already beginning to hit people's finances and could well undermine future confidence."

Recently, Arla reported that it still believes that around half of all landlords are planning on increasing their portfolio of property in the coming months.

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