Investors could flee buy-to-let market

Rising interest rates and relatively low rental returns could squeeze investors in the buy-to-let property market and possibly lead to a shift in investor focus to equity markets, leading industry figures say.

5th August, 2006

Rising interest rates and relatively low rental returns could squeeze investors in the buy-to-let property market and possibly lead to a shift in investor focus to equity markets, leading industry figures say.

Rates look set to continue rising, according to John Beggs, chief economist with AIB. He said that he expected further rate increases from the European Central Bank (ECB) after this week’s decision to raise rates to three per cent. ‘‘I think at this...

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