Buy-to-let market growth is sustainable

I read a very interesting article recently in the trade press about how buy-to-let lending has changed over the years.

Ying Tan
1st April 2015
Landlords

The piece, by a well-known lender, focused on the fact that while the sector is extremely strong at the moment and lending could hit £30bn by the end of the year, it is much more controlled these days than it was in the past. And I couldn’t agree more.

Those of us who have been involved in buy-to-let for a long time will remember the days when it was seen as a get rich quick scheme. Indeed, even not so long ago, in the years leading up to the credit crunch television programmes and newspapers were full of tales of savvy investors who were ‘playing’ the property market and making a fortune. It may have been an exciting time for the market but it was also pretty risky.

Since the downturn, which hit the market hard, we have seen a slow and steady return to growth for buy-to-let and whilst today it is a very buoyant market in which to operate, it is much more measured and controlled.

Those people who are buying properties to let are receiving sound advice and have a well-thought out plan. Such properties are not being used as a means to get rich quick anymore. And rightly so.

I have always believed investing in property is one of the best investments a person can make however buy-to-let should always been seen as a long game and investors should not be expecting their portfolios to increase in price rapidly.
As a result of the more controlled lending we are seeing, the growth the market is experiencing is more sustainable and as such the future looks bright for buy-to-let.

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