Landlords 'attracted by low deposits'

News Category: Industry News

This article was brought to you by Rentman the premium rent management software.

A new study has suggested that the size of the deposit is one of the biggest draws for landlords looking to expand their portfolios.

Property investment specialists TIC found that 54 per cent of investors cited size of the deposit as the leading factor in deciding whether or not to invest in a particular region.

The study also found that 11.5 per cent per cent of landlords said that they would be more likely to invest in new properties in a regeneration area.

However, TIC's report stressed that it was important for landlords to consider the long-term prospects of an investment, rather than just the low up-front costs.

Indeed, a spokesperson from John Charcol, Ray Boulger, recently said that new landlords should not enter the market expecting short-term gains.

"If you are already in the market, there is no point in coming out; but if I was thinking of buying now, I wouldn't rush in to it," he explained.

"Professional investors are aware that property prices don't just go up forever, but some of the amateurs have been sucked in on the basis that we've had 12 years of property prices rising and they perhaps haven't factored in that that's not going to happen forever."

Find out more about letting agency software.