Rise in distressed sellers may benefit landlords

News Category: Industry News

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Landlords with access to credit may find the coming months present them with an ideal opportunity to expand their portfolios.

The March edition of the Nationwide House Price Index showed that residential property values increased by an average of nine per cent in the past 12 months, suggesting the housing market recovery is well underway.

However, a new report by Property Portfolio Rescue (PPR) indicates that the house price data does not tell the whole story.

The company saw a 20 per cent rise in enquiries about its services from distressed sellers in the first quarter of 2010, as homeowners grow increasingly worried about the possibility of having their properties repossessed.

Nick Hopkinson, a director of PPR, said the situation is likely to deteriorate after the general election, particularly if interest rates rise and there are significant changes to the tax regime.

PPR predicted repossessions would remain at record levels during 2010, which could give landlords with access to funds the chance to add to their portfolios at a relatively low price.

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