Landlord Mortgages, specialist in offering buy-to-let mortgages, says anecdotal evidence suggests letting agents nationwide are exaggerating potential investor returns by up to 18.5% above rents offered tenants.
The difference between rents quoted to researchers posing as investors and those posing as tenents looking for property to rent could undo many business plans, the lender says That is becuase investors in buy-to-let properties may be banking on the higher return figures quoted by letting agents against the much lower rents the market may support for any particular properties. Honest agents were encountered in Leeds and Sheffield during the mystery shopping exercise organised by the lender, where the difference in respective prices quoted was nil. However, this was not enough to offse...
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