“THINK TWICE” –
SAY PROFESSIONAL LANDLORDS

A second wave of new buy-to-let investors is likely to be attracted to the student shared accommodation market in England’s university cities.

But the leading Residential Landlords Association - whose members own over 100,000 private rented properties throughout the UK – warns inexperienced property investors to think twice before they rush to buy available houses.

The first wave of buy-to-let investors, five years ago, attracted thousands of new investors to property as a ‘bricks-and-mortar’ alterative to stocks and shares or troubled pension schemes.

But, two years ago, rising house prices and interest rates slowed down the boom … until last summer’s cut in interest rates. That revived their interest and led to a record 130,400 new buy-to-let mortgages – a surge of nearly 40 per cent over the first six months of the year.

But the RLA is worried that many amateurs may burn their fingers if they chose the student let sector.

The problems surround the estimated 500,000 ‘houses in multiple occupation’ - properties occupied by five or more tenants often rented to university and college students, post graduates, student nurses and trainee teachers.

“Even professional landlords are having trouble with the new Housing Act - which will be implemented on 6th April and introduces a controversial raft of complicated legislation surrounding HMOs,” says RLA Chairman Chris Town.

“Newcomers would be well advised to look into this whole sector very carefully and seek a great deal of advice before committing themselves.

“Otherwise even the shakiest pension scheme might start to look good by comparison.”