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Consumers have begun to lose faith in buy-to-let as Unbiased.co.uk finds that nearly a third of Brits believe rental property investments are going to make a loss in the current climate.

The website's research found that 28% of Brits believe buy-to-let property investments will make a loss right now, and a further quarter of Brits think those invested in the buy-to-let market are likely to just about break even.

The research also reveals how there is a generation gap when it comes to opinions on the buy-to-let market. One in ten of those aged over 55 expresses caution and expects those invested in the buy-to-let market to lose a lot of money, whereas one in ten 18-34 year olds are slightly more frivolous, believing buy-to-let properties will still make a lot of money. Londoners are also most inclined to look on the bright side, with nearly one in ten saying they believe buy-to-let property investment are still a good opportunity to make a profit.
David Elms, chief executive of Unbiased.co.uk says: "The years of the booming property market made investing in bricks and mortar very attractive. But unfortunately this boom couldn't continue forever and those invested in the buy-to-let property market may now be facing losses due to the current economic climate. Furthermore, the number of buy-to-let mortgages on offer has greatly reduced, meaning those lenders remaining in the buy-to-let space have tightened their lending criteria making funding even harder to find for potential landlords.

"If you are considering becoming a buy to let landlord, or if you are struggling with existing mortgage repayments, we urge you to speak to a whole of market mortgage adviser for the best possible advice on your situation. A whole of market mortgage adviser can also talk you through the opportunities and potential pitfalls of the buy-to-let market and whether this is appropriate for you."

SOURCE: Unbiased.co.uk, 09/06/09

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