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Buy to let a risk for borrowers

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  • 07/10/2002
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Speculative borrowers run the risk of substantial financial loss if they move investments out of the...

Speculative borrowers run the risk of substantial financial loss if they move investments out of the stock market and into the buy-to-let market, according to Ryan Emmett, an economist for the Royal Institution of Chartered Surveyors.

During a panel question and answer session at The Mortgage Event in Bolton, Emmett warned that, as stock markets continue to fall, people moving out of stocks and shares and into the buy-to-let market are entering into a risky area.

‘The market is vulnerable to a slowdown in demand. London is especially at risk and rents have been falling for some time. However, for those in this for the long term, the market is due for expansion,’ said Emmett.

Eddie Smith, business development director at Verso, said 45% of Verso’s lending was now buy to let.

He added: ‘There is lots of scope for the long term, but the market is risky as a pension substitute, or for a short-term quick buck.’


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