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A buy-to-let property investment is now only an affordable proposition for the wealthy, it has been claimed.
Given the UK's current interest climate, in addition to shifts in rental yield and mortgage ratios, the Royal Institution of Chartered Surveyors (Rics) now believes that buy-to-let investment is no longer really feasible for the average investor because of the number of barriers that are now in place.
"It takes more capital than ever to set up a buy-to-let investment," said David Stubbs, a senior economist for Rics. "Would-be investors who have missed out on the impressive returns of previous years are now finding the hurdles to property investment are higher than they imagined," he added.
To highlight this point, Rics observed that while during the first quarter of 2002, it was possible to arrange a mortgage on a buy-to-let property with a deposit of eight per cent, a 30 per cent deposit would now be required. In related news, the Bank of England and the European Central Bank are both expected to leave interest rates on hold today.
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