March 12, 2009
Landlords Going "Soft"
More UK landlords could soon be looking to manage their portfolios using property software as investors are being tempted into the potential returns offered by buy-to-let, it has been suggested.
According to Ian Potter, operations manager for the Association of Residential Lettings Agents (Arla), investors could be attracted to the rental market after interest rate cuts from the Bank of England.
The Bank last week cut the base rate to 0.5 per cent, which has limited the returns of some investment vehicles.
However, rental yields still average about four to five per cent despite the economic downturn, the expert from the residential lettings industry body said.
"Buy-to-let remains a solid investment, particularly if you're looking to commit for the long term and not out just speculatively investing or looking for quick capital uplift," Mr Potter explained.
He added that bricks and mortar appears to be a safer investment vehicle than stocks and shares, but warned investors to research their local residential lettings markets to ensure they choose properties capable of high
