Landlords believe now is perfect for buying more property

Landlord Expert
By Landlord Expert September 2, 2012 09:01

Current house prices and demand for rental properties - why investors think that the time is now.

In summary:

  • 48% of investors believe that now is a good time to buy
  • 53% talked about strong tenant demand
  • 82% want to invest now because the time is right

It is no secret that the buy-to-let market is one of the most positive in the UK at the moment, with the sector performing at a better rate than the traditional buy-to-sell market.

Results of a recent poll have also suggested that buy-to-let investors have confidence in the current market conditions and consider now to be a good time to further invest in property and expand their portfolios.

LSL Property Services carried out a survey which found that 48 percent of BTL investors believe that now is a good time to enlarge their portfolio and less than one percent stating that they need to reduce their portfolio, demonstrating a staggering difference.

The main reason for this is the property prices being seen in the current market are lower than they were five years ago so people are reluctant to sell but these lower prices are beneficial for investors who can obtain high rental returns from the strong demand for property and confidence is being increased in the market with properties being bought from a business perspective for a long-term investment.

David Brown, Commercial Director, LSL Property Services said: “House prices are still subdued in many parts of the country and tenant demand is still growing.

“This is presenting landlords with the opportunity to secure strong yields on properties, and boosting confidence in buy-to-let as a long-term investment.”

He added: “The majority of landlords expect tenant demand will increase in the future, and as long as lending to first-time buyers remains in the doldrums, and new house building remains subdued, we won’t see demand for rental accommodation tail off.

“In these conditions, while affordability may increasingly come into play as landlords set rents, they are far more likely to continue to rise than tumble in the coming 12 months.”

The results of the same poll found that 82 percent believe that now is a good time to buy because of house prices whilst 53 percent cited strong tenant demand.

Landlord Expert
By Landlord Expert September 2, 2012 09:01

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