Landlord confidence boosted by favourable rental conditions
8th April 2011

Recent research which has been carried out into the buy to let property market has found plenty of positive signs which bode well for the next few months.

The research shows that landlords are feeling confident about the short-term future of the rental market. A survey conducted at the end of March has found that 12% of landlords plan to purchase an investment property in the second quarter of the year. The same research also found that one in four landlords felt that tenant demand had increased in the first quarter of 2011, compared to just 8% who felt it was declining.

In addition to the favourable market conditions, landlords are also finding the value of their portfolios increasing. The average value rose for the second quarter in succession, increasing by just over 6%. Another telling statistic is that landlords expect the overall value of their assets to be 1.2% higher a year down the line.

On the whole house prices have risen since the middle of last year and landlords have been busy taking advantage of the market conditions. This has led to a glut of property insurance quotes, bringing life back into the property insurance market.

This news has been universally welcomed by those involved in the property market, as well as those pedalling property insurance. With confidence growing, competition has grown amongst lenders, which in turn has driven down the cost of lending, creating a far more hospitable environment for buyers.

The current low rates of interest are also assisting landlords, contributing modestly to the improvement in the number of buy to let arrears.

Private rental expert Malcolm Harrison commented: "There are various things that are happening, and it is all, in many ways, good news for both landlords and tenants. Landlords are able to let their properties; they don’t have as many outgoings so find themselves in a far better position.

"If interest rates remain low, and if more buy to let products come onto the market, it is going to be a good thing for the private rental sector." For further information regarding landlord insurance, or to receive competitive property insurance quotes, contact Property Cover Plus today.