RLA News Service

Yolande Barnes, a research analyst affiliated with Savills, a major estate agency in the United Kingdom, expects British landlords to hold off on selling any of their buy-to-let properties, as long as they are able to service their loans and mortgages. It does not seem to make much sense for landlords to start selling off their buy-to-let portfolios when property prices may very well be close to hitting rock-bottom in much of the UK. But Barnes went further and also suggested that this might be an ideal time for landlords with some liquid funds to purchase more buy-to-let properties, and particularly houses. Buying a house appears to be a safer bet at the moment than investing in a flat, and it is especially important to ensure that the home is in a top location.

Some analyst point out that house prices may begin to rise again later in 2009, especially because the supply of residential properties for sale is rapidly dwindling. Many homeowners are putting off the sale of their property, provided that they are able to make all mortgage payments. They are doing this in order to avoid selling for extremely low prices. As such, purchasing a buy-to-let property now may very well be a sage decision for landlords who are not having difficulty meeting their current financial obligations. “An awful lot of people holding cash are keen to buy, and I think they reckon the bargains are starting to appear,” Barnes told the Yorkshire Post.

Thank you to the Yorkshire Post for the initial report.