May 6, 2009
Landlords Advised Not To Sell?
Landlords should take a long-term view of their investments instead of looking to offload properties in the near future, according to a market expert.
The fall in property prices has seen the value of buy-to-let portfolios drop and some landlords find themselves with negative equity problems.
Some investors may be tempted to cut their losses and accept any reasonable offer for their houses, but Lucian Cook of real estate consultancy Savills said that could prove to be a mistake.
He explained that demand for rental property is likely to remain strong in the coming years, as it is difficult for young people to save enough money for the size of deposits now being sought by lenders.
In addition to the future opportunities offered by keeping hold of rental properties, it is also a bad time to sell.
"We believe we are now within five per cent of the bottom of the market … Therefore, a landlord able to take a mid-term view would be well advised to hold their property," Mr Cook added.
Although the market expert is upbeat about the potential of the residential lettings sector, the most recent FindaProperty.com Rental Index showed that the average monthly rent has fallen by 5.3 per cent to £827 during the past 12 months.
Source : Rman
