Buy-to-let market 'has turned'

The buy-to-let market has turned and is offering promising opportunities to landlords looking to invest.

That is the view of John Charcol, which has claimed that income from rent is likely to cover any purchases of new homes in the coming years.

However, the organisation noted that there are drawbacks such as unreliable tenants and a restricted buy-to-let mortgage market to be overcome.

Ray Boulger, senior technical manager at John Charcol, told Investors Chronicle that higher house prices in the coming months could also tempt landlords to invest, while taking out landlord home insurance should be a priority.

He said: "Be aware that more tenants will default as unemployment rises and you can insure against that.

"But rental incomes will generally be adequate to cover a buy-to-let mortgage. House prices will rise back to where we were two years ago."

Investors Chronicle noted that there is a widening gap developing between the supply and demand of buy-to-let mortgages.

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