October 6, 2008

Buy to Let goes broke

Buy to let used to be one of the main sources of income for estate agents and mortgage lenders, but since the property market has taken a down turn and the recent financial problems, this market has all but dried up.

But now there are even more problems facing this volatile sector of the property market, with one of the main firms involved within the industry paying the ultimate price of the credit crunch by going into administration.

The company is Instant Access Properties, which primarily offered the middle classes to opportunity to enter into this lucrative market without all of the hassle of the buying and management of the properties. For this privilege, many investors paid around £8,000 to join the club that was before they even began to buy any property.

Source [This is Money]