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Buy to Let

Brits believe buy-to-let remains risky

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
18/03/2015

Buy-to-let is perceived as a risky way to investment cash, a report has suggested.

A report by Emerging Property found 36% of Brits believed it was extremely risky to purchase property to rent out.

This figure is despite an increase in the number of buy-to-let landlords in the past year. Figures from HM Revenue & Customs showed there were 1.6million buy-to-let landlords in the UK at the end of 2014 after an increase of 120,000 across the year.

However, 63% of would-be investors said they were deterred by the possibility of tenants causing damage to the property.

A similar number (62%) said they were concerned about losing their income when the property was vacant.

There was also a difference in opinion between areas of the country.  In London some 39% of buy-to-let investors said they expected the market to grow. However, in the North East that figure was 21%.

James Harrington, business development manager at Emerging Property, said investing in student property could minimise some of these risks.

“Purpose built student accommodation is designed to mitigate the key concerns expressed by investors in this survey,” he said.

“Not only are they operating within a market that delivers far greater yields than traditional buy-to-lets, but also, as the result of onsite property management and guaranteed returns, provide a hassle-free passive income, with zero costs and complete peace of mind.”

“With existing supply gaps, this is resulting in high demand and positive rental growth, which ultimately leads to improved yields and enhanced security. This trend is set to continue, with legislation, both at the national and local level, encouraging increased university intake and exacerbating demand for purpose built accommodation.”


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