Professional landlords 'active in the market'

News Category: Industry News

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Some properties available on the UK property market are "too good to be true" and buy-to-let investors could be taking advantage, it has been suggested.

Timothy Lambert, sales and marketing manager at property investment consultancy Ducalian, said distressed properties are encouraging long-term investment options such as buy-to-let.

He added that professional landlords are currently able to source homes at 20 to 30 per cent below market value, while yields are comfortably breaking the ten per cent barrier.

The trend could be good news for letting agents as cash-rich landlords might opt for property management services or financial products such as rental guarantee insurance in the current economic climate.

Indeed, Mr Lambert's comments support the findings of the State of the Nation report presented by Business Development Research Consultants at the British Property Federation's Residential Conference in January.

This study showed that professional landlords were enjoying higher profits amid the economic crisis, because they were taking advantage of low house prices, repossessions, auctions and sale and rent back schemes.

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