Buy-to-let industry fails to attract new blood

The number of new investors in the buy-to-let market has decreased by almost half.

The buy-to-let market has seen numbers of investors drop by nearly half that of 2004, according to the Telegraph.

Figures released by the Mortgage Trust have revealed that only 12 per cent of buy-to-let investors are new participants in the market.

At the same period last year, 23 per cent of those investing in rental property were freshman.

The Trust blames the decrease on a progressive slowdown in the housing market along with the Bank of England's 0.25 per cent interest rate cut last week.

Nicola Severn from Mortgage Trust said a survey of mortgage brokers revealed a profound pessimism, with over 50 per cent stating that they were not confident that their buy-to-let business would pick up in coming months.

Mrs Severn said: "The speculators that flooded the market a couple of years ago have disappeared. Although falling interest rates clearly bode well for the market. . . some brokers believe that the high prices are still causing problems for new entrants."