Fascinating research from the Money Centre shows that over 40 percent of buy-to-let landlords do not expect their rent to provide any profit once they have covered mortgage costs. This is well up from 19 percent last time the Money Centre ran its survey.
It intrigues me, because property has traditionally been an investment valued primarily on yield and intended to produce a regular, predictable stream of income. However, these landlords will only make money if property prices continue to rise - or if rental levels increase. Property has moved from income investment to growth investment over the course of the last few years.
Now the last investment I remember that did that was BT. Traditionally a stock yielding 4-6 percent, the tech boom saw its rerated as a growth share. Now, it's back in income stock territory.
Will the same happen to property investment?
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