Buy-to-let has staying power says Charcol

Longer-term the sector will prove its worth as some 300,000 additional properties are added to landlords’ portfolios over the coming decade, pushed by competitive mortgage borrowing rates and pensions reform. Buy-to-let property will attract significant tax relief when held within pensions after 6 April 2006, adds Ray Boulger, senior technical manager, which should act as a “trigger”. Strong economic fundamentals also point to maintained interest in the sector, despite recent concerns over falling yields as interest rates have pushed up borrowing costs against rental incomes. Charc...