Market volatility increases attractiveness of buy-to-let
August 18, 2007 by admin
Filed under News, News-Mortgages
The recent fluctuations in the UK stock markets have caused a lot of financial concerns among investors.
Originally caused by the meltdown of the US sub-prime mortgage sector, the current turbulence in credit markets might lead some to look elsewhere to grow their assets.
Mortgage Trust commented today that some landlords are finding safer bets in the buy-to-let market.
According to their research, 32 per cent of new landlords have cited control over their investment was a major factor behind their decision to enter the market.
This represents a four per cent rise over the same question asked by the company in January.
Managing director at Mortgage Trust John Heron commented: “When investing in stocks and shares, your only option if you don’t like the way an investment in a fund or company is performing, is to sell.
“With buy-to-let, landlords are in the driving seat. As financial markets become increasingly volatile, this level of control will become more attractive to investors.”
Mr Heron also claimed that the spiralling base rate of interest – which the Bank of England has raised five times in the last year – had also led investors to become “increasingly risk averse”.
