Analyst predicts 'good future' for buy-to-let

03 November 2006
Tom Entwistle, the editor of property investment website Landlordzone.co.uk, has predicted a strong market in buy-to-let mortgages for the coming years.

Particularly when it comes to smaller properties, Mr Entwistle said, landlords and potential landlords could reap solid returns through the incessant rise in house prices and the growing demand for rented property.

"It is easier to let smaller properties as there is greater demand," he said, noting that in some cases moving away from the traditional penchant for inner city flats and maisonettes could also help to increase the profitability of a rented property.

"There is a good demand for a single property where there aren't that many to let, for example in a rural area," Mr Entwistle continued. "I would avoid buying new builds because that market is saturated."

A report by Paragon into the returns on offer through buy-to-let investments supports Mr Entwistle's claims that property purchases were a financially solid bet with rental yields consistently outperforming other investments - stable and in excess of six per cent.

To read more about buy-to-let mortgages, click here.


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