News in depth

BTL remains a sound investment

17 March 2007

The survey indicated confidence in the long-term rewards of the BTL market had lead to new BTL investors pouring their money into property. Mortgage Trust reported 75 per cent of landlords surveyed expected to hold on to their property for more than five years, with 26 per cent looking to keep their first property investment for over 15 years.

High tenant demand increased rents by 6.9 per cent in the last three months, resulting in higher yields. On average, respondents expected their portfolio to increase by a factor of three over the next 10 years.

John Heron, managing director of Mortgage Trust, commented: “There is continuing confidence in prospective house price growth and the rewards that can be achieved from capital gain on a property, as well as the rents achievable in the shorter term. The total returns achievable on a BTL portfolio are an attractive prospect for investors.”

Roy New, a sole broker based in London, said: “An investor should have their portfolio spread across the board, so along with pensions and investments they should have BTL. It’s a very good investment for the long-term, as it hides the short-term ups and downs, and the general market has gone up substantially over the years.”