According to "The Negotiator Magazine" 48% of landlords believe that now is the time to invest in properties by expanding or at least maintaining the size of their current portfolios. 72% of landlords plan to do so within next 12 months.
Those landlords have seen tenant demand constantly increasing for the past eight months. Now it hits the highest level according to LSL buy-to-let index. David Newnes, estate agency managing director of LSL, confirms these statistics and highlights the problem with mortgage lending conditions in order to explain the rise in tenant demand.
Mortgage lending conditions bring uncertainty to the property market, making the reason why many potential home buyers prefer to stay in private rented sector instead of buying their own house. And it seems that current mortgage difficulties might also result in even bigger increase in tenant demand within next few years.
The Government expects that people instead of waiting in a very long queue for social housing where they will have to pay approximately 80% of market price, will rather choose private rented sector as more secure option. That brings opportunities for landlords to earn more by renting properties. So many of them are currently investing in buy to let market more than ever even though current mortgage finance proofs to be a serious obstacle to greater investments.
Despite of the above difficulties landlords invest more in properties and they should try to minimise some other difficulties and risk which renting a house might bring: such as any damage, theft or losing money because of unfair tenants. With relevant landlord insurance or rentguarantee insurance from specialist providers like Rentguard, property investors can easily take care of their assets.