"Excellent" time to expand portfolio - buy to let mortgages

11 February 2009

Now is an "excellent" time for landlords to expand property portfolios if they have the money, it has been claimed.

The economic climate means that the housing sector is a "buyer's market" at the moment, according to Simon Zutshi, founder of the Property Investors Network.

However, he noted that holders of buy to let mortgages should ensure they have cash reserved as a "buffer" to help them protect against unexpected costs such as bills or unsuitable tenants.

This can help to minimise the risk of falling into difficulties and being forced to sell a property at a reduced price, he said.

Mr Zutshi also advised: "It's possible to get a good deal at the moment, but it absolutely must be for cash flow. You should not be buying anything you have to subsidise."

The average house price in January 2009 stood at £163,966, according to a report from Halifax.