Investment Prospects

So, are there any reasons to be optimistic about buy-to-let, particularly for those considering entering the market? Neil Young, CEO of property portfolio managers Young Group says: "Mark Twain famously said 'Reports of my death have been greatly exaggerated'; the same can be said of the buy-to-let industry. The Young Index data shows that investor sentiment remains extremely healthy, particularly in London and in areas where regeneration and investment in infrastructure is expected to generate positive long-term growth."

Demand for rental properties continues to be fuelled by demographic changes that are country-wide: the increasing number of single households and the net positive immigration into the UK.

Scrutinise each investment opportunity

"As with any investment asset class, it's imperative to scrutinise each opportunity carefully and ensure that it is supported by sound fundamentals. In the case of buy-to-let, investors need to ensure that the balance between property supply and demand is in their favour."

The Young Index which is based on a poll of 500 active investors who hold UK investment property, in October 2008 found:

• 98% of investors intend to hold their residential property investments for the next 12 months (up from 91% in Q2).
• 34% intend to hold their assets for at least 10 years
• More than 20% of buy-to-let investors aim to keep their property investments for the next 15 years or more.