Buy to Let _ A Rich Mans Game

Royal Institution of Chartered Surveyors

The Royal Institution of Chartered Surveyors RICS has claimed that the buy-to-let market is now so inaccessible that only wealthy investors can afford to enter it.  With interest rates rising and rental yields for mortgages taking a nosedive, some landlords are being forced out of the sector.  

Would-be investors are having to put down a deposit of £65,600 – 30 per cent of a property’s value just to get a foothold on the buy-to-let ladder, compared to £10,100 – 8 per cent of the property’s value back in 2002.  

Our view

All direct investment opportunities have an element of needing capital to be involved.  Property is no different.  Given the recent falls in property values and the adjustment of property fund prices, we suggest now is not a poor time to consider investment.  

For those with lower capital values or wishing to save on a regular basis, we suggest that you may wish to consider insurance company property funds or pension property funds or real estate investment trusts.  All these are pooled property funds, where your money along with many others is invested to purchase and manage property.  

Useful links:

Learn more about this and related topics in the Mortgage Adviser Channel

Request expert financial advice now

Purchase guidance on financial planning in the Money Shop 

Back to News Summary