Buy-to-let can be profitable - but beware the pitfalls - Mortgages, Money - The Independent

Buy-to-let can be profitable - but beware the pitfalls - Mortgages, Money - The Independent

Buy-to-let is enjoying a return to favour among investors as more people than ever turn to renting. In fact, figures from the Communities and Local Government Department published this week revealed a 55 per cent increase in the last six years in the number of people renting privately-owned accommodation.

The number of private renters increased from 2.15 million in 2003-2004 to 3.35 million in 2009-10 as potential homebuyers have discovered they simply can't afford to raise the deposit to buy a home, especially what the best mortgage deals require a 25 per cent deposit or more.

The increase in the number of people choosing to rent their homes has seen a resurgence of interest from prospective landlords hoping to profit from rising rental yields, while acquiring a decent asset. .....