Demand for rental properties on the increase, poll suggests

Monday, 4 July 2011 2:27 PM

Almost half of the UK’s landlords feel rental demand is higher than it was just six months ago, a new report shows.

A poll by CHL Mortgages indicates that more landlords are feeling upbeat about the future of the buy to let sector – some 67 per cent compared with 64 per cent last year.

According to the study, published on Property Wire, one in three landlords is looking to buy more investment properties over the next 12 months.

But a lack of finance and the high deposits required are perceived to be the key obstacles for investors, the report said.

CHL managing director Bob Young was reported as saying: “Landlords are clearly positive about the future of buy to let and they have good reason to feel this way with rental demand growing as a result of a number of underlying drivers.”

He added that, with uncertainty in equity and bond markets, more investors might think about entering the buy to let sector, particularly if property prices were to fall over the next couple of years.

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The UK's major cities provide plenty of prime locations in which to purchase a buy-to-let property. There is always an extremely high level of demand for homes close to the centre of London, Birmingham, Glasgow and other large urban areas. A property in one of these places can provide an excellent return on your investment.

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