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Emphasis on long term as yields tighten

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.”

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