Property Investors Given False Hope
By Misleading Property Information
The importance of conducting thorough Due Diligence has again been highlighted, this time by the British Property Federation (BPF) who have recently said that the lack of official data relating to the UK Buy To Let industry and the UK PRS rental markets as a whole may be giving landlords in some areas a false view of the potential profits they could make.
According to the BPF most of the survey and research data being broadcast on the internet is not representative of the UK property investment industry as a whole, and any potential landlords reading it could be led to believe figures that don’t apply to their local areas.
Liz Peace Chief executive of the BPF, commented, “Some of the figures that have been bandied around trumpeting large rent increases are very misleading and do not reflect the picture across the entire country. For a long time we’ve been calling for more reliable rental figures and I welcome the UK National Statistics consultation that has just closed, which is looking to improve its statistics on residential rents, and we support the suggested switch to Valuation Office data. The larger sample size should lead to improvements in the quality of data and provide a more comprehensive picture across the whole market.”
Julian Ramsden, partner at RW Invest, warned landlords to take unofficial data with a pinch of salt when looking at potential investments. His advice – “Before you buy any property call up the local agents in the area. Estate agents want to lease something as easily as possible, so approach them as a tenant and pit them against each other. That gives you a better picture of what’s happening in the market.”
MyPropertyPowerTeam.co.uk recommend that property investors should always conduct thorough Due Diligence on every aspect of any property deal and to check out all parties that could have access to your finances or your intended property purchase.
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