Financial market volatility means control for landlords

One in three landlords has cited control over their investment as a driving factor in their decision to invest in property instead of in unsecured assets, Mortgage Trust research shows.

Investors' responses suggested that volatility in the financial markets is promoting awareness of risk and the relative advantages of property-based investment.

"Five interest rate hikes in a year have left investors increasingly risk averse," explained the Trust's managing director, John Heron.

But "whilst there is uncertainty in many financial markets at the moment, it is clear that landlords believe buy-to-let remains a solid investment option," he continued.

Yields for buy-to-let investors have stabilised at around six per cent for over a year, while "attractive returns" on a 12 month investment are at around 11 per cent.

Meanwhile, demand for rented accommodation is high in present housing market conditions thanks to affordability constraints on would-be home buyers, large numbers of whom are turning to rented residence as a stop-gap until high prices subside.

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