Landlords may now have a period of loss
The Government has released figures showing that in the UK house prices grew on average by 3% last year bringing the average house price to just over £200,000. While this is good news for homeowners landlords are now finding it more difficult to invest in property. After experiencing a fortuitous 2 years landlords must now dig deeper in their pockets if they want increase their property portfolios.
Landlords can see some fortune in the predictions of some property experts who predict that house prices are set to decline during the second half of 2010. But as it has been for landlords recently this cloud is coated in silver as the increase does mean that first time buyers are still unable to purchase a house forcing them to rent during this period of increase expected, increasing tenant demand for let property.
Meanwhile the number of mortgages made available by lenders is increasing but not at the rate that is needed. These different circumstances may prove to be a financial gold mine for landlords in the short term as they can for now sit back and reap the benefits they have gained.
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February 19th 2010