Could rising house prices see buy to let portfolios increase in value?

15 June 2010

Written by Jeni Browne

Buy to let landlords may see their portfolios increase in value as the latest Royal Institution of Chartered Surveyors (Rics) UK Housing Market Survey has revealed that house prices advanced in May.

According to the study, 22 per cent more respondents noted a rise than a fall in the worth of property last month, compared with 19 per cent in April.

Most parts of the country are seeing the increases, although Northern Ireland, Wales, the West Midlands and Yorkshire and Humberside are exceptions.

The market is now seeing greater supply following the abolition of home information packs (Hips), the research found, with the net balance of chartered surveyors reporting a rise in new instructions surging to 21 per cent in May from 11 per cent in April.

Last month, the Department for Communities and Local Government announced the suspension of the requirement for Hips during house sales, saying that it would be easier and less expensive to put property on the market without the need for extra paperwork.

The rise in housing coming on to the market is likely to continue, the body commented, as 73 per cent of respondents said they expected to see as much as a 15 per cent increase in supply as a result of the change in legislation.

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