Buy-to-let investors ignore gloomy reports

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by Gill Montia

The continued buoyancy of the buy-to-let market can in part be explained by research from Young Group.

In a recent survey the property portfolio manager found that nine out of every ten investors do not pay much regard to media reports regarding the buy-to-let sector.

The same proportion of respondents also tended towards a medium-term view of investment and planned to keep properties for at least the next 12 months.

Young Group focuses on the London market and its study found that 82% of buy-to-let investors in the capital believe that prices will rise or remain level in 2008; over 50% of respondents plan to invest in London during the year.

Chief executive, Neil Young, comments: “As with any investment asset class, it’s imperative to scrutinise each opportunity carefully and ensure that it is supported by sound fundamentals.”

In the case of buy-to-let, investors need to ensure that the balance between property supply and demand is in their favour.

MortgageWorks, the online mortgage broker, recently named Newcastle as the best city for buy-to-let investment and estate agents, Savills, has been pointing out the opportunities that still exists across many of the UK’s university towns.