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I looked into this when I was trying to sell my place to see how feasible it was to buy without selling (my buyer had just fallen through).
Personally I found that the yield was pretty poor once adjusted for tax which isn't particularly beneficial to buy to let on a small scale. A few empty spells would wipe out any profit. I also wouldn't be surprised if the position got worse.
Basically it was pretty much all about gambling that property prices would continue to increase at a decent rate so you'd get a good return at the end. There have also been noises recently about merging CGT with income tax which would likely significantly bump up any tax on property sales.
aggi
Does anyone have any experience of buy to let as an investment. I know the ship has somewhat sailed for the high returns but that could be said for most things. I have the needed 25% deposit for a flat where I am or 25% deposit for two flats in a cheaper area where I don’t live. Pros and cons to both. Yield would be higher on two flats out of area but they would be out of area and two to deal with.
Or are there better things to be looking at right now?