Consumer body Which? has come under fire after it said earlier this month that people would be better off putting money in the bank rather than investing in buy to let.Lenders and brokers say the Which? statement was an attempt to grab headlines but there is an admission that yields are down in some areas. Which? claimed that while BTL is increasingly popular, would-be landlords need to weigh up the pros and cons carefully to ensure they are making a sound investment rather than rushing in. London and Country mortgage specialist James Cotton says: “Property is an asset class and at any time you can show things as being better or worse in the short term as there are fluctuations but it is a long-term investment and people should remember that.” Mortgage Express head of BTL Gus Park says: “There is no doubt that, in some parts of the country, yields are tighter. BTL investors do not think it is a licence to print money. People know they have to find the right property at the right price to keep their costs down.” Alexander Hall chief operating officer Andy Pratt says: “Yields do tighten and, just like any investment, you have to be careful and have to balance the portfolio. Some of the comments that I have seen are to attract headlines. I think decisions have to be made for the long term.”
Property trusts were again the top-selling sector in August for the eight consecutive month. Net Isa sales were 1.7bn, the worst figures in 11 months.
The argument that bancassurance is threatening IFAs is tired and irrelevant
Intrinsic is offering to take on the regulatory liability of the 109 firms, comprising 200 appointed representatives, of Friends Provident’s now closed mortgage network. Friends says the network accounted for 1 per cent of its business and90 jobs will be affected.
BT’s decision to slash the equity exposure of its 36bn pension scheme has met with a mixed reaction from investment specialists. The firm is cutting a third of its UK equity allocation, valued at 3bn, and doubling its exposure to alternative assets, including hedge funds and private equity from 7 per cent to 15 per […]
The rally in cyclical ‘value’ stocks paused for breath in February, as investors took a more cautious tone and switched their attention back to defensive areas. In this article, Jacob de Tusch-Lec, manager of the Artemis Global Income Fund, explains how he has positioned the portfolio, given the many economic, geopolitical and policy risks that […]
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The impact of weaker markets saw funds under management at St James’s Place drop in the first quarter of the year, when compared to its Q4 2017 result. In an update this morning, SJP says funds under management at 31 March 2018 were £89.9bn, down from £90.8bn in the previous quarter. On a year-on-year basis, funds under […]
The Department for Work and Pensions expects to spend £96.6bn on the state pension in 2018/19, a 3 per cent increase on the year before. The DWP has detailed its cost estimates in a memorandum sent to the work and pensions select committee, published on its website yesterday. The latest forecast for state pension costs […]
I always try to check my Twitter feed over breakfast. Recently, a tweet from IFA Philippa Gee caught my eye. She had taken her time to attend an investment conference and found she was the only woman there. Comments followed that this occurrence is far too common. According to Unbiased, just 13 per cent of […]