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and London property specialists since 1959

News

May 28, 2013

Buy To Let

Buy To Let

Buy-to-let survey

A survey by the Mail on Sunday of prospective and existing buy-to-let investors indicates most are using, or planning to use, bricks and mortar to generate income rather than capital growth. The survey discovered that they see buy-to-let as a real alternative to a traditional pension and putting cash on deposit where annual interest struggles to beat 1%. By comparison, the average yield from buy-to-let is about 6%. Of existing buy-to-let investors surveyed, 60% are planning to or are considering adding to their portfolios in the next year. The findings confirm the emergence of buy-to-let as a crucial component in many investors' portfolios. Latest figures from the Council of Mortgage Lenders indicate that buy-to-let loans account for 13% of the total of 11.26m mortgages in Britain. The survey also found that only 56% of investors are very confident they understand the risks of buy-to-let, while 38% are quite confident. Only 34% have taken buy-to-let advice from the internet, an adviser or an estate agent. David Hollingworth, director of broker London & Country Mortgages, comments: “There is a clear shift in the attraction of buy-to-let. It is now about the income that the rental property can generate as opposed to capital growth, which very much became the focus at the peak of the market before the financial crisis of 2008. This shift comes against a backdrop of poor returns on savings and an underlying confidence in property as a long-term investment.”