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Why invest in buy-to let?

As an income investment for those with enough money to raise a big deposit buy to let looks attractive, especially compared to low savings rates and stock market swings.

Meanwhile, the property market bouncing back after its financial crisis lows has encouraged more investors to snap up property in the hope of its value rising.

House price rises have priced most people out of London property investment, but some areas of the UK are still to regain the ground lost after the financial crisis slump and investors are increasingly looking there for stronger returns.

Mortgage rates at record lows are helping buy-to-let investors make deals stack up.

But beware low rates. One day they must rise and you need to know your investment can stand that test.

There is also a tax rise being put in place, as buy-to-let mortgage interest relief is axed and replaced with a 20 per cent tax credit.

Additionally, since April 2016 landlords now have to pay an extra 3% stamp dutyon property purchases.

It's also worth noting that the Bank of England has buy-to-let mortgages in its sights.

Yet despite the tax changes and potential for buy-to-let mortgage costs to rise, there are positives.

Greater demand from tenants, rents that should rise with inflation and the long horizon for interest rate rises, mean many investors are still tempted by buy-to-let.

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