Buy To Let Investors Ride Out the Storm

8th March 2007

Despite interest rates creeping up and rental yields tightening, record levels of established landlords are looking to expand their portfolio as they remain committed to buy to let as a long term investment.

A survey carried out by the Homebuyer Show (02-04 March, ExCel, London) reveals Experts at the Homebuyer Show stress that with property prices at record levels, interest rates rising and rental yields falling back, buy to let is not an investment option for making a ‘quick buck’. However, for investors looking to the long term, both the capital value of the property and the rental income are likely to go up, making buy to let a balanced investment.

 
Simon Zutshi, Founder of Property Investors Network, who will be exhibiting and speaking at the Homebuyer Show comments: “The key thing to remember is that buy to let is a long term investment. You should not get into property investment looking for a short-term gain. With the market tightening, it is vital that investors exercise caution and do their research. Investors should ensure that the cost of borrowing is met by rental income. However, buy to let still offers excellent returns. There will always remain a high demand for rental accommodation with increased immigration, a growing population and renting remaining a popular lifestyle option. And, although property prices are stabilising now, the average value will definitely continue to rise in the long term.”

Notes to Editors:
About the Homebuyer Show
The Homebuyer Show will be hitting the ExCeL Centre in London’s Docklands from Friday 2 to Sunday 4 March 2007, and will feature over 250 exhibitors specialising in all aspects of the property market both in the UK and abroad. There will also be a comprehensive programme of expert-led seminars covering all aspects of buying, selling, financing and managing your property. Entry to the show is free of charge, with the majority of seminars costing just £5 each.

For further information about the Homebuyer Show please contact:

Julia Bandy / Louise Marshall / Vicki Fletcher
The Wriglesworth Consultancy
020 7845 7900 / v.fletcher@wriglesworth.com

About the survey:
A survey of 500 visitors registered at the Homebuyer Show
that 47% of people wishing to purchase a property are looking to expand their portfolio, compared to 40% last year (see graph 1).

Many novice investors are also still committed to the UK buy to let market. The survey reveals that the level of interest has remained strong with 17% looking to enter the market.