Estate agents shying away from sales of buy to let properties because of recent government clampdowns on the sector risk missing out on their share of £1.5 billion in fee income.
That is the message from Martin Wilkinson, founder of property investment portal Buy2Let.com. He says that despite recent threats to tax breaks and potential mortgage restrictions, the sector still provides rich pickings for agents.
He says around 70 per cent of buy to let investments are cash purchases so will not be impacted by mortgage accessability changes while the sector generates around £100 billion worth of transactions each year, generating typical fees of £1.5bn - “that’s the equivalent of £60,000 for every agency branch” claims Wilkinson.
“We know that some agents and investors have been put off buy to let by these recent changes, but for many landlords, its business as usual. A buoyant rental market is producing some fantastic yields, and rising property prices mean that investors continue to build up equity too, in addition to their rental income” says Wilkinson.
“There are actually very few asset classes, includes, bonds or annuities, which offer the same levels of return as a buy to let portfolio, so the sector will continue attract savvy cash investors who are looking for long-term investments with decent returns.”