Buy to let investment to increase say Rightmove

The number of landlords looking to invest in the buy-to-let sector is set to increase as investors look to take advantage of the sustained demand and strong yields in the rental market.

This is the verdict of the latest Rightmove Consumer Rental Forecast which shows that 74% of professional landlords intend to increase their rental portfolio in the next 12 months giving a much needed boost to available housing stock.

As well as existing landlords adding to the rental stock, the proportion of ‘virgin landlords’ intending to purchase a buy to let property for the first time in 2013 is now at 44%, its highest level for more than a year.

Miles Shipside, director and housing market analyst at Rightmove, said: “While the cavalry charge from major institutions seeking to invest in the private rented sector has so far failed to materialise, private landlords, whether accidental, virgin or professional, are perhaps enjoying the respite and seizing the opportunities that come with having the battlefield to themselves.”

The increase in landlords is likely to have a cooling effect on rental price growth much to the relief of beleaguered tenants.

Peter Lawrence at Lawrence Rand said: “Buy to let remains a popular choice for many and is currently producing returns ahead of most other investments.

Tenant demand remains strong and, whilst I expect to see some growth in 2013 in the number of first time buyers entering the market, the balance of property supply vs demand is likely to remain in favour of landlords.”