Buy-to-let investment 'can be beneficial'

By Jonathan Dawes, Mon 16 Aug 2010 - Published in Mortgages

Investing in buy-to-let investment can be beneficial despite the uncertainty in the market, one sector expert has stated.

Tom Entwistle, director of LandlordZONE.co.uk, said that rental demand is still strong and rents have risen, due to the fact that house prices have remained relatively high and financing remains difficult for first-time buyers.

His comments follow the publication of a report by the Council of Mortgage Lenders (CML), which showed that the number of properties taken into possession by first-charge mortgage lenders continued to fall in the second quarter of 2010.

However, Mr Entwistle said that the sector appears to be in the situation where homeownership may not be possible for many of those who would previously have bought a property.

"Compared to other forms of investment, residential property still remains a relatively safe place to put capital, providing you [are] diligent. However, the ability to obtain finance for this purpose is likely to remain very difficult for some time to come," he said.

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