Professional landlords 'should not fear market crowding'
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An increase in the number of reluctant landlords entering the private rented sector is "no real problem" for professional landlords, an industry official has said.
Julie Woolfenden from the National Landlords Association commented on the impact of oversupply brought about by new homeowners entering the rental market instead of selling their property at low prices, reports the South Wales Evening Post.
She indicated that landlords and letting agents do need to take into account the impact of reluctant landlords in some local areas.
"Whereas professional landlords can chose the ideal location, these reluctant landlords are stuck," Ms Woolfenden said. "They don't have any options and might be bringing the rents down in some areas."
Her comments come after the effect of the economic crisis on the property market has restricted the availability of mortgage finance for some prospective first-time buyers, which has led to an increase in tenant demand.
Meanwhile, studies of the private-rented sector have also shown that buy-to-let mortgage holders with large portfolios have been able to capitalise on low house prices and generate higher profits despite the recession.
Find out more about marketing with letting agent software.19-February-09Marketing News