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Investors turn to complex deals as rent growth slowed by 1.7% in 2013

A higher number of investors are considering more complex buy-to-let deals to safeguard returns, according to Mortgages for Business.

Buy-to-let investors are using more complex deals to safeguard their returns and gain higher yields, says the Director of Mortgages for Business.

David Whittaker made the claims after LSL Property Services’ Buy-to-Let Index suggested more people than ever before are relying on rented accommodation.

Rents in 2013 rose by 1.5% according to the Index, although this is down from the 3.2% rise experienced a year earlier.

Mr Whittaker said: “With property prices rising and rental growth slowing, landlords may be feeling nervous about protecting their incomes.”

He added that this could be the reason they are increasingly turning to more complex deals with higher yields, with the hope of safeguarding returns and the security of tenants’ homes.

With strong demand for rental property set to continue as housing supplies struggle to match, the number of landlords opting for complex deals is likely to substantially increase.

If you are considering property investment in the buy-to-let sector, a fully managed scheme can take all the hassle out of managing the scheme and finding tenants.

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