LSL Property Services have released new data which shows private landlords are optimistic about adding a property to their portfolio and protecting it with landlord insurance. Almost half believe now is an ideal time to invest their money, this figure has increased from the 47% recorded in the first week of June last year.
Increasing demand for rental accommodation was thought to be the main reason for this confidence. Only 1% of landlords surveyed thought now was a good time to reduce their portfolio. This means they should have no trouble selling the property to another landlord who can look forward to tenant demand increasing further during the next year. However, the main obstacle for a landlord to expand in the private rental sector is the ongoing mortgage finance constraints.
David Newnes, estate agency managing director for LSL Property Service, said “The buy-to-let mortgage market is not going to spring back to its pre-downturn level in the foreseeable future, but there are signs that it is picking up slightly for investors. There is still a chronic lack of supply of rental homes, and it is crucial that lending criteria loosen to encourage professional investors into the market to grow the private rental sector.”
It is not just British landlords who are looking to buy properties in the UK; overseas investors are also considering this to be the best time to buy a property in the capital thanks to a unique combination of factors. The exchange rate is a driving force because it makes many homes a fifth cheaper than five years ago. Strong rental demand is another reason and London continues to be a focal point. There is also a growing number of international students flooding into London and those families that can afford it are buying property to house them. London has traditionally been viewed as a safe haven for property investment which offers excellent appreciation and good rental yields, it would appear the current financial situation is not adversely affecting this.