Professional landlords expanding their portfolios

News Category: Industry News

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Many landlords are bucking the downward trend of the wider economy and expanding their portfolios to make further profits, research has shown.

A study by Business Development Research Consultants found that every landlord in ownership of 20 properties or more was making a profit.

However, the financial crisis is having a negative impact on amateur landlords, many of whom have entered the rental market after failing to sell their homes last year amid falling house prices.

"Whilst professional landlords are able to cover their costs and expand their portfolios, the amateur landlords, many of whom 'fell' into letting by accident, are really starting to feel the pinch," said Mark Long, client director at BDRC.

Successful landlords were also found to be using sale and rent-back schemes, and taking advantage of repossessions to invest in new homes.

Its findings come after David Newnes, managing director of estate agent Your Move, earlier this week said landlords are seeing rental demand "go through the roof" as would-be first-time buyers struggle to obtain mortgage finance to get on to the property ladder.

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