Mixed future predicted for landlords' portfolio

Date:Thursday 15th October 2009
Author: Max Freedman

The Residential Landlords Association has informed landlords that they will have differing fortunes depending on what kind of property they are renting out.

Alan Ward, chairman of the organisation, pointed out that the market for two-bedroom flats has been satiated, which suggests prices will not rise much more.

On the other hand, those landlords who own properties in desirable areas could see the value of their portfolio increasing, according to Mr Ward.

But, when he was asked whether landlords in a good financial situation should expand, he was unsure.

Mr Ward said: "The key to that question is those landlords in a good financial situation - and that means those with a good capital or available equity."

This week, research by Paragon Mortgages indicated that 14 per cent of landlords are planning on investing in property in the next three months.

It also showed that the net value of property portfolios is expected to increase by an average of 0.8 per cent over the next year.