Findings from the study showed that the South East continued to provide the strongest investment returns for new build BTL in the UK, despite recent strong performances in Yorkshire and the North East.
Market performance during 2006 was better than expected, particularly in the South East where restricted supply forced buyers to be increasingly
competitive.
Anthony McKay, chief operating officer at Inside Track Group, said: “BTL continues to increase in popularity as an investment. However, it has never been more important for investors to get expert advice on where to invest and spread risk by diversifying their portfolio.”
Nick Gardner, director at Chase de Vere Mortgage Management, said: “It is not as simple as saying new build is full of untapped potential. It is notoriously difficult to get valuations, especially with developers offering discounts. Traditional properties have proven themselves to be less risky in the market and while there is nothing inherently wrong with new build property, investors should be aware of the risks involved, such as fluctuating valuations.”
