What's in store for buy to let market?

28 September 2009

Written by Jeni Browne

Various reports of late have suggested that the buy to let property market is starting to recover after a period of decline, but it would appear there are still a number of challenges facing the sector.

Tom Entwistle, editor of landlord website LandlordZONE, has claimed that there are three main factors that will hold back would-be investors in the next 12 months.

Lack of mortgage availability at an affordable price is one element and the possibility of house prices falling again is another, the expert stated.

"Plus there's the prospect we face a long, slow recovery with unemployment likely to go on rising for some time yet," Mr Entwistle explained.

His comments come after the latest Young Group's Young Index showed that 26 per cent of landlords outside London are looking to buy more properties in the coming year - a low figure that does not surprise the editor.

However, 77 per cent of investors are confident that house prices in London will either grow or stay the same during that period.

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