Landlords 'need to carefully assess rental demand'

News Category: Management

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Landlords need to carefully assess an area's rental demand before making any property investments, it has been suggested.

According to Tom Entwistle, director of LandlordZONE.co.uk, investing in the buy-to-let market could still be a good idea currently for a number of reasons, as rents have risen and tenant demand for accommodation remains strong.

But he warned that landlords should take their time and exercise "extreme caution" before making any further house purchases.

"Assessing rental demand in any investment location is crucial," Mr Entwhistle stated, adding that it will also be difficult for many landlords to obtain the necessary finance for property investments at the moment.

Nevertheless, the expert said that residential property is a relatively safe place to put money, "providing you [are] diligent".

According to recent figures from the Council of Mortgage Lenders, the number of property repossessions fell in the second quarter of 2010 to 9,400 - down from 9,800 in the opening three months of the year.

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