Saturday, December 2, 2006
Go for BTL
The Royal Institution of Chartered Surveyors said recently that the climate of rising interest rates has "painted the buy-to-let market as a less favourable investment". Nevertheless, the organisation did claim that investors had a "high level of confidence" in the long term buy-to-let market because of the low levels of selling activity.Nigel Terrington, CEO of Paragon mortgage lenders, said: "We have seen steady activity on the part of property investors, who are growing their portfolios in response to additional demand from foreign migrants, young professionals, families and students." He added that despite the rate rises this has been good news for the buy-to-let market: "With this solid demand, rental yields have remained steady over the past six months at six per cent despite house price increases." He does not expect interest rates to rise any further.