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Property investment advice: Buy-to-let looking strong

People looking for property investment advice have been told there are strong returns to be had in the buy-to-let market. Savills reported this week that prime London rents have been rising well ahead of inflation for at least the past 18 months. Rents rose by ten per cent in the past year and by 1.8 per cent in the last quarter. Roger Southam, chairman and chief executive of Chainbow, which specialises in managing residential developments on behalf of owners, freeholders and developers, believes there is a "very good return" to be had from buy-to-let investments. He explained that the growing number of young people unable to buy their own home is "fuelling a boom" in lettings. "If you've got the cash, the product is there to buy and the ability to generate a very good yield on the income stream is now easier than it has been in the residential market," he added. Independent property industry expert Malcolm Harrison says there will be more people entering this sector as the gains will be appealing. He also notes that "mature" investors are beginning to realise that a buy-to-let investment is for "at least ten years". Posted by Alex McLean
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