Buy to let landlords may see lower portfolio values

13 July 2010

Written by Jeni Browne

Buy to let landlords' portfolios may decrease in worth, as research has revealed that UK house prices fell in June.

A study conducted by the Royal Institution of Chartered Surveyors (Rics) found that a net balance of ten per cent of surveyors posted a rise in property values last month, compared with 22 per cent in May.

The survey revealed that house prices were still increasing across the nation, but that strengthening supply was limiting their growth.

Jeremy Leaf, a spokesperson for the body, explained that a shortage of property on the market had been limiting sales activity, but the abolition of home information packs was helping to reverse this trend.

"However, with supply of property now beginning to outstrip demand, there is a risk of some modest slippage in prices during the second half of the year," he added.

Supporting this data, housing economist at Halifax Martin Ellis recently stated that the worth of homes had fallen by 0.6 per cent in June.

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