Buy to let sector under pressure
A report into the UK buy to let sector would appear to indicate concerns are growing and many landlords are looking to remove themselves from the industry in the short to medium term. The report by LSL Property Services shows that 42% of buy to let investors believe it is still a good time to buy in the UK against 48% during the first quarter of 2010. Around 20% of buy to let landlords are also looking to exit the industry which is an increase of six percentage points from the first quarter of 2010.
This is an obvious concern to investors in the UK because many believed that the worst was over for the UK buy to let sector and there was potential for further growth in the short to medium term. When you also consider the fact that fewer and fewer people are buying properties in the UK and the need for rental space is increasing we may see a potential squeeze on rental values. However, despite all the doom and gloom and initial downbeat headlines from this survey an impressive 32% of buy to let landlords still expect to expand their portfolios over the next 12 months.
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