Landlords cautious of buying during recession

| October 2, 2009 | 0 Comments

Only a quarter of landlords outside London are planning to increase their property portfolios over the next year, research has discovered.

A study by Young’s Group found that just 26% of non-London landlords are in the market to purchase extra properties.

Tom Entwistle, editor of landlord information site LandlordZONE, said the results of the poll were not surprising given current economic conditions.

“There’s the prospect we face of a long, slow recovery with unemployment likely to go on rising for some time yet,” he said.

In addition, there is a lack of mortgage finance available for buy-to-let investors at a “reasonable price”, Entwistle said.

Despite the lack of available mortgages, Entwistle believes landlords should not rule themselves out of the property market.

“I think selective buying of the right types of rental property could present some real bargains over the next couple of years, for those with the necessary resources,” he said.

Young’s Group also found that more than half of landlords expect property prices to remain stable or increase over the next 12 months.

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