28 June 2005
Professional property investors are the dominating force in the buy-to-let market, according to new research from John Charcol.
These landlords, who hold ten or more properties, own 95 per cent of the buy-to-let stock.
While 30 per cent of buy-to-let investors own just one property, this group accounts for just one per cent of buy-to-let housing stock.
John Charcol's senior technical manager, Ray Boulger, welcomed the findings:
"The buy-to-let market is built on much firmer ground than recent warnings have suggested.
"Far from being propped up by legions of cautious first-time landlords, the market is dominated by professional investors who take a long-term view of their portfolio of property investments.
"These landlords have also been able to take advantage of a number of great products recently to further enhance the return on their investment."
Further research showed that 97 per cent of buy-to-let investors intend to keep their investment properties even if house prices fall.
On top of that buy-to-let investors appear to be in the market for the long-run: nearly two-thirds say they intend to keep their properties for at least ten years, with a third expecting to keep them for over 20 years.
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