1 in 5 landlords added to portfolios in 2011
Posted by Gary Winters
Almost one in five landlords made a new UK property investment in 2011, new figures have revealed.
According to a report by the Young Group, 19.1 per cent of landlords added additional residential property assets to their portfolios last year, driven by the expectation of both rising rents and capital values.
Investments in buy-to-let in London could be particularly fruitful, the report suggested, with 85.1 per cent of landlords in the capital expecting rents to rise over the coming year, compared to 79.5 per cent of landlords outside of London.
Furthermore, a full 100 per cent of respondents think London property values will be at current levels or higher by the end of the year, while just 30.4 per cent of those in the rest of the country think likewise.
"The London rental market is particularly strong and demand from tenants seeking quality private rented sector accommodation shows no sign of abating, buoyed by a population that is spending longer than ever living in rented homes and increasingly living in solo households," commented Neil Young, chief executive of the Young Group.
There is strong appetite for property investment among landlords across the country, however, with 16.2 per cent considering purchasing new assets over the coming 12 months, rising to 41.9 per cent in the capital.
But despite the general positive outlook for the sector, buy-to-let investors have a number of concerns that could impact business outcomes in 2012.
The study found that 42.2 per cent of landlords cite lack of mortgage availability as their biggest concern, while 24.4 per cent are principally worried by declining job security - up from ten per cent in the last quarter of 2010.
It follows a recent poll by buy-to-let lender Paragon which found that 56 per cent of landlords expect tenant demand to grow in 2012.
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