Investors tempted by buy-to-let

Investors in the south-east are increasingly tempted to buy-to-let, as rental incomes increase and house prices fall.

According to a recent Royal Institute of Chartered Surveyors (Rics) residential lettings survey, rental yields in the south-east of England have seen a sharp increase since 2007, while the average house price has fallen by 6.3 per cent.

Only two per cent of landlords surveyed by Rics were considering selling their properties at the expiry of their tenant leases - with four out of ten expecting to increase their portfolios during the coming twelve months.

Robert Coppen, a recent buy-to-let investor in Kent, said: "The figures stack up on rental returns and I strongly believe that the capital investment potential for anyone who buys here is good."

Last week Nationwide's chief economist Fionnual Earley reinforced these views, when she said that she believed that the buy-to-let industry will cope well with the continuing effects of the credit crunch and property market downturn.

Property Investment News posted on 07/07/2008 10:27:06