'Warning' for buy-to-let sector

People investing in the buy-to-let sector have been warned to make sure they know the risks of purchasing property.

The Times has suggested that many people are attracted to the sector, but do not end up making profits due to mismanagement and other factors.

This follows the failure of an investment scheme involving Dylan Harvey Residential Ltd, which has gone into administration.

Around 500 investors paid deposits of up to £20,000 for apartments in the project, which has yet to go ahead.

Francesca Steele from the Times said: "Glossy pictures of sleek residential developments and the promise of guaranteed rental income lured hundreds of investors into schemes in the north-west that have failed to materialise.

"The investors' case against the group has been building for more than a year, as angry depositors tried and failed to get their money back on the projects that had still not been started."

Previously the newspaper has urged buy-to-let investors to thoroughly research the differences between buying homes and purchasing houses to rent out.

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