A recent survey by a mortgage lending company specialising in buy-to-let lending to UK landlords has give a positive forecast of both house prices and rents. Landlords expect the value of their property portfolios to continue to enjoy moderate rises over the next twelve months. This is the first quarter survey that has showed landlords are positive about their future since the first quarter of 2007.
Landlords in many areas are also reporting positive prospects for the rents achieved with the west midlands being identified as an area enjoying increased rents. It is thought by many that the recent rise in house prices has reduced the number of “landlords by default”, property owner who unable to sell their property decide to rent it out instead. These accidental landlords produce an increased supply in rental property which in turn leads to downward pressures on rents.