Buy-to-let hit hard by the recession

Tuesday, 09 June 2009 12:02

Buy-to-let has been hit hard by the recession, with consumer confidence declining.

According to a survey by Unbiased.co.uk looking at property investment, nearly a third of Brits believe buy-to-let will make a loss in the current economic environment, with a further quarter believing investors will just about break even.

The research highlighted a generation gap, with one in ten of over-55's cautious of the buy-to-let market, and expecting those with investments to "lose a lot of money". At the younger end of the survey, one in ten 18 to 43-year-olds believe the investment will still make money, according to the Unbiased.co.uk research.

David Elms, chief executive of Unbiased.co.uk, said: "The years of the booming property market made investing in bricks and mortar very attractive. But unfortunately this boom couldn't continue forever and those invested in the buy-to-let property market may now be facing losses due to the current economic climate.

"Furthermore, the number of buy-to-let mortgages on offer has greatly reduced, meaning those lenders remaining in the buy-to-let space have tightened their lending criteria making funding even harder to find for potential landlords."

Some eight per cent of Londoners surveyed said buy-to-let was still a good opportunity to make a lot of money.

Mr Elms added: "If you are considering becoming a buy-to-let landlord, or if you are struggling with existing mortgage repayments, we urge you to speak to a whole of market mortgage adviser for the best possible advice on your situation.

"A whole of market mortgage adviser can also talk you through the opportunities and potential pitfalls of the buy-to-let market and whether this is appropriate for you."

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