According to Mortgage Express, the world is changing for the buy to let landlord and investor. With the upturn in interest rates, mortgages have become more expensive and house prices have risen. Yet rent has stayed the same. This means higher outgoings for many, in return for the same level of rent.
Our View
Buying second properties to let for an income has been booming for the last few years, mainly due to rising house prices and low interest rates. This has meant many people making profits on their properties whilst saving money on mortgages.
The long-term issue of the boom in buy to let is not quite so rosy. We are already seeing the market swamped with properties to let and this creates competition. If you want to rent your property it will either have to offer something extra-special or be cheaper to rent than other properties.