Long-term buy to let 'still works' - buy to let mortgages

25 November 2008

Holders of buy to let mortgages have defended the sector after it was suggested that some landlords may be in financial difficulty.

Industry experts at the Landlord and Buy to Let Show at the NEC in Birmingham said that the market has a promising outlook for investors.

However, Standard & Poor recently claimed that up to four out of ten investors are facing negative equity due to the slump in property prices.

Buy to let landlords at the event advised their industry counterparts to conduct a large amount of research into the types of properties in an area as well as their tenants.

By following this guidance holders of buy to let mortgages can still make a success out of a long-term investment, they stated.

Homeowners affected by negative equity may have purchased their property when the market was its peak, with recent Land registry figures revealing that house prices are down eight per cent in the last 12 months.