Long-term gains still possible for landlords

News Category: Industry News

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The lack of housing supply in the UK will mean that landlords will continue to see capital appreciation in their portfolio in the medium and long term, an industry expert has said.

In recent weeks, there have been suggestions that the UK housing market could be about to suffer a crash.

However, Pierre Williams, head of communication at Inside Track, explained that the supply of housing in the country meant that it was unlikely that landlords would suffer any significant losses in the coming years.

"There's an awful lot of very negative sounding press coverage with regards to house prices. That's not borne out by reality - just look at the latest index today showing that there's been further rises in house prices over the last month," he said.

"Just because [prices have] not rocketed at the same pace as they have over the previous few years doesn't mean that it's not a good investment.

"On the contrary, it's quite a relief that the massive hikes of recent years have calmed down… We believe that property is a very good medium to long-term investment."

Recently, Arla claimed that buy-to-let landlords were vital to the health of the UK housing market.

Adrian Turner, chief executive of Arla, explained: "Our quarterly figures show that investment landlords are in the business of residential letting for the long term.

"This is vitally important. Without these investors, who have helped to save the private rented sector by re-financing it, there would be little or no choice in housing."

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