Location 'vital when adding more properties'

News Category: Industry News

Landlords need to carefully select the location of their next investment and try not to follow the crowd when it comes to expanding their portfolio, an industry expert has said.

The Independent newspaper has reported that, as more and more people opt to invest in buy-to-let, the market in some areas is becoming saturated.

For example, rental yields in London have begun to dip recently because there is so much competition that landlords have had to fight to get tenants.

Landlord Mark Dalton explained to the paper: "There's no point investing where large numbers of people have already invested - by that time, it's too late."

Recent research suggested that rental properties in university towns could offer landlords consistently high yields.

Lee Grandin, director of Landlord Mortgages, explained that landlords often found student lets were more "lucrative" than renting to families or professionals.

Colin Kemp, managing director of Halifax Estate Agents, added: "More than one quarter of university towns have seen house price increases of at least 20 per cent over the past year.

"Investors have been attracted by the steady increase in university populations."