Investors need to do their research

Buy-to-let property investors have been warned that they need to do their research before entering the market.

That is according to the Building Societies Association (BSA), which says that returns can still be made but investors must be careful.

Neil Johnson, PR and policy manager at the organisation, said that all costs need to be considered before a purchase is made.

"People should make sure before they go out and buy that they have done their sums and they know that what they are buying makes sense. There is still a market out there for it, but clearly if you are not careful you are going to get your fingers burnt," he commented.

"The main thing to do is to get an independent idea of what the property is worth and what kind of rental value you would get. Then you do the sums and make sure it makes financial sense.

"The important thing to do is to take account of all the other costs too, rather than just looking at the mortgage coming out," added Mr Johnson.

The Association of Residential Lettings Agents recently revealed that demand for rented accommodation in the UK is at a five-year high.

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