Flats a "very good" investment for landlords

Date:Wednesday 28th October 2009
Author: Max Freedman

An industry expert has suggested that flats are a good choice for buy-to-let landlords.

Lee Grandin, director of Landlord Mortgages, claimed that flats are good letting properties because they are normally at the cheaper end of the market.

He observed that some over-priced new-build flats have proved to be bad investments but this does not mean all flats should be.

Mr Grandin's comments were made following a report by the Royal Institution of Chartered Surveyors, which indicated that there has been 15 per cent quarterly drop in demand for flats.

In his opinion, this comes down to the large deposit currently being asked for by lenders.

"I don't think it's a case of them not being popular. I would say that maybe it's more the case that lenders are restricting lending on new build flats," Mr Grandin explained.

He pointed out that there are very few people who have the money to pay for deposits at the moment, so transaction levels are likely to stay low for the next few years.