Buy to let adviser goes to the wall

A firm that offered advice to potential buy-to-let investors has gone into administration.

Inside Track promised to turn its customers into buy-to-let property tycoons, but a combination of falling house prices and the credit crunch limiting the supply of specialist mortgages has led to the company closing its doors.

It has also been reported that customers had threatened the firm with legal action when they lost thousands of pounds of failed property investments.

David Salusbury, chairman of the National Landlords Association, said: "Inside Track promised to make the UK a country of property millionaires. However, there is a real danger in encouraging such massive speculative investment ... Investors in residential property should be focused on the provision of affordable and decent homes over a much longer period of time, and not just capital growth."

This is a massive fall from grace for Inside Track. At the height of the property boom, its nationwide seminars attracted hundreds of people. In 2005 it made a £12m profit, followed by £10.8m in 2006. Even last year, when the market started to cool considerably, it posted a £6.9m profit.