Rental demand for small properties 'remains strong' - buy to let mortgages

30 April 2009

Rental demand for smaller-sized homes remains strong as first-time buyers are restricted from entering the property market, it has been noted.

Keshav Thukaram, managing director of smartlandlord.co.uk, explained that many people are still waiting to purchase their first house and are renting in the meantime.

While this may be good news for those with buy to let mortgages, Mr Thukaram stated that supply is also high as owners who are unable to sell their homes put them onto the rental market.

In addition, he said that rising unemployment among tenants may pose a risk to landlords if they begin struggling to make payments.

Despite this, he predicted that rents will remain "fairly stable" in 2009, adding: "Yields are looking attractive and with the housing market nearing the bottom, many landlords are looking at expanding their portfolios."

Meanwhile, Michael O'Flynn, the content editor for Findaproperty.com, has claimed that a "modest" improvement has been seen in the housing sector, with the fall in prices slowing in April.

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