Rental property investment a 'winner'

Investing in rental property appears to be a "sure-fire" winner in the foreseeable future, according to a property website. Chris Horne, editor at Property Hawk, said that the outlook looks positive for landlords due to a number of factors. This includes a strong demand for such arrangements and the fact that mortgage costs look as though they will "stay historically low for a long time". The rise in landlord confidence had to partially do with interest rates as Mr Horne went on to explain.

"It is partly driven by expectations on interest rates. The biggest expense for any landlord when buying a property is obviously the mortgage and the finance costs," he said. "On the back of what has happened with the US stipulating that they are not going to raise interest rates until 2013, there is a slight chance that will impact on the interest rate environment here, which means that interest rates are likely to stay fairly low for the next couple of years."

The comments follow a report from Paragon showing that, for the first time in two years, the average landlord expects to increase their property portfolio within the next 12 months.

Source: www.selfstore.co.uk