Buy to let market may profit from house price increases

26 April 2010

Written by Michael Aglony.

The buy to let sector may gain from a slow property market.

According to the latest National Housing Survey from Hometrack, the leading provider for residential housing statistics, house prices have continued to rise.

Prices have gone up 0.2 per cent in April. This indicates a slight slowing of the pace of price increases from 0.3 per cent in February and March but it is still 1.8 per cent higher than at this point last year.

In a survey of 1,500 agents and surveyors across the country, Hometrack found that the supply of homes for sale was at 3.7 per cent, surpassing demand which was at one per cent.

Although this signals a slowing property market, the PRS Trends report from the Paragon Group, which surveys landlords, associated a slow housing market with both a rise in tenant demand as well as an increase in landlords' portfolios.

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