Buy-to-let sector must be researched before investing

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by Kay Murchie

The Association of Residential Lettings Agents (Arla) has advised those looking to increase their property investment portfolio by looking at the buy-to-let sector should do their homework by researching the local market for price discrepancies.

Arla has highlighted that prices vary within a few miles and different types of properties can be more popular in certain areas. The regulatory body remarked that prices in the rental market are evaluated by street. The area must be checked out carefully if planning a buy-to-let or buying as an investment.

Arla added that talking to letting agents will give you an idea of what is in demand and the type of property that is successful when investing in the buy-to-let market. Prices could differ just a mile down the road.

A report by Standard Life Bank has established that nearly half of Independent Financial Advisers believe the sector will continue to grow in the short term.

Finally, statistics from buy-to-let broker Landlord Mortgages, highlighted that Durham in the north-east is delivering the best performance and landlords who rent out properties to students are making better returns than the rest of the buy-to-let market.