Buy-to-let properties a "long-term investment"

Date:Wednesday 30th September 2009
Author: Max Freedman

Buy-to-let properties may not offer a short-term profit for landlords, but in the long term, they can provide a good return, according to an industry professional.

Mark Garner, owner of LettingZone, made his comments following the news from the Association of Residential Letting Agents (ARLA) that the number of new tenancies is increasing while property oversupply is dropping.

He pointed out that if a landlord can find a two-up two-down terraced house for the right price, then there is scope for a good long-term return on the capital invested.

Mr Garner explained: "If you're a cash-rich landlord and you understand the market, it is a good time to get into the market if you buy the right type of property."

The ARLA survey indicated that the number of its members who say that there are more tenants than properties has increased to 24 per cent from ten per cent last quarter.

In comparison, the number of members who believe that there are more residential properties than there are tenants has fallen from 70 per cent down to 43 per cent.