Oversupply will affect impulsive investors

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Established landlords who make a living from investing in property will benefit from falling house prices, but those who have "jumped on the bandwagon" will not.

That is according to Landlordzone.co.uk, which has asserted that the oversupply of property in the UK market will have the biggest impact on those "who have just gone in for the speculative investment".

The site's editor, Tom Enwistle, noted that the vast number of people who had invested in property believing that prices would continue to increase have contributed to the fact that prices have "got to come down now" and warned that it may come to the point where they have to let properties to undesirable tenants.

He explained: "For the established landlords that are running this as a business, as opposed to the ones who have just gone in for the speculative investment, they are happy with it. It doesn't really matter what the price of your property is if you are renting it for the long-term. And if they do drop, some of them will be buying in.

"The people who have gone into this more recently, jumping on the bandwagon and seeing this as a great way to make money quickly, they are the ones who are going to suffer."

Mr Entwistle's comments follow reports from the Royal Institution of Chartered Surveyors (Rics) which indicated that demand for flats had fallen due to "an oversupply in the market".

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