Rising costs will end speculation
The rising costs of buy-to-let mortgages will have a positive effect on the housing market in the long-term, according to an industry expert.
The editor of Property Hawk, a website offering advice and information to landlords, has admitted that the consequential reduction in speculation will make the market more accessible.
According to editor Chris Horne, higher prices are making landlords “think harder and more carefully about where they buy and what the yields are”.
“They will probably avoid some of the overpriced new builds, which have sprung up in our city centres,” he said.
Once all the “speculative froth” is removed, “serious long-term investors will be more likely to get property for a reasonable price”.
The Royal Institute of Chartered Surveyors‘ recent report states that buy-to-let landlords are currently required to pay a deposit of around 30 per cent of the properties value.
