Landlords ‘are confident’ about portfolio expansion

There are signs in the UK that the amount of rental stock is likely to increase in the near future, according to one specialist, which is good news for landlords.

Private rented sector expert David Lawrenson said there are signs that the amount of rental stock is likely to increase in the near future, with most reports indicating that landlords are “quite confident” about expanding their portfolios.

“The studies that I have seen tend to say that even in the current economic circumstances, landlords – particularly the more experienced ones – want to buy more property and increase their property empire,” he explained.

Mr Lawrenson said that, on the whole, landlords “know what they are doing” and are “quite confident” moving forward, with the rising rents only serving to boost this confidence.

The specialist explained that one of the reasons why rents are going up so strongly is because house prices are still holding up in London and there is a lack of new house building to meet the increase in the “burgeoning population” in the UK.

Landlords can be to some extent picky, but they have to get the pricing right, as there is a danger that they will be “too greedy” and price too high, thereby putting off potential tenants.

“They would have to price it realistically and then they can choose from good quality tenants,” the expert added.

Source: zoopla.co.uk