Lettings expert: A lot of people are getting into the buy-to-let market
Posted by Lucy Wooldridge
A large number of people are still looking to make a UK property investment despite recent figures suggesting some landlords are more interested in consolidating their portfolios this year.
That is according to David Lawrenson, private rented sector expert at LettingFocus.com, who says he has seen a rise in enquiries from landlords interested in investing in new buy-to-let properties.
Mr Lawrenson was commenting after a survey by the Association of Residential Letting Agents (ARLA) found that 23 per cent of landlords questioned in the fourth quarter of 2011 said they plan to buy a new property over the coming 12 months, a fall from 25 per cent in the preceding quarter.
"I think a lot of people are getting into the market, so I am quite surprised at that [finding]," he said.
"There are certainly more people looking to get into the market judging by the amount of queries I am getting - there is much more correspondence with landlords than before."
However, he noted that there could be some significant regional variations when it comes to appetite for new investments, with markets in London and the south generally doing better than those in the north of the country.
"I have heard from very experienced landlords in the north where things are very different and much more depressed than they are in London," said Mr Lawrenson.
"They are seeing some real issues with tenants who are becoming indebted and who they have had to evict because of non-payment of rent."
Another problem is mortgage availability, with many banks and building societies still restricting their buy-to-let lending, which may make it harder for some to invest.
"The banks and building societies are extremely intransigent and looking for any excuses not to lend said the expert.
Nevertheless, buy-to-let could still prove to be a profitable investment in 2012, with ARLA president Tim Hyatt noting that the private rented sector "still represents substantial value for investors looking to enter the market or increase their participation".
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