John Charcol: Buy-to-let investors should take long-term view

27 September 2007
Investors looking to enter the buy-to-let market should not do so with a view to making short-term gains, one expert has advised.

Ray Boulger, spokesperson for John Charcol, said that house prices appear to be slowing down and could potentially "flat-line" during the next year.

While "professional" property investors acknowledge that house price growth is unlikely to continue forever, Mr Boulger said that new investors may be attracted to the market without considering the possibility of prices falling.

"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," he remarked.

Earlier this week, the Association of Residential Letting Agents reported that 90 per cent of landlords would not sell their property if prices fall.

More than half of landlords surveyed by the organisation said that they were investing to make long-term capital gains.

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