Insurance News Archive

Buy-to-let investors warned of short-term bubble

Commercial property investors should not look to invest their money in the buy-to-let market if they are expecting short-term gains, one expert has said.

John Charcol, one of the country's leading independent mortgage advisers, has claimed that a recent slowdown in property prices has meant that relatively short-term gains from investments in buy-to-let are unlikely.

A spokesperson for the firm, Ray Boulger, explained: "The health of the buy to let market depends on the health of the property market generally.

"The starting point is what people expect the property market to do. And we are quite clearly seeing a slow down at the moment."

He added that, from the viewpoint of buy-to-let investors, it would be unwise to enter that market with a short-term view.

"If you are already in the market, there is no point in coming out; but if I was thinking of buying now, I wouldn't rush in to it," he warned.

However, Mr Boulger admitted that those investing for the long-term are likely to continue to see results.

25 Sep 2007