Property Price Rise A Mixed Blessing For Landlords

 According to a recent survey, 70% of UK landlords report seeing an increase in property prices in their area recently. This sounds like good news and in one way it certainly is. The property price increases will go a long way towards reversing the capital loses a lot of landlords experienced in the recent crash. There is also a less favorable side to this bit of news, however.

A lot of landlords who were in a strong financial position had been slowly and steadily increasing the amount of properties in their portfolio, something that is bound to be a financial boon for them in the future. The rise in the market is going to put the brakes on this activity.

One thing is for sure landlords have proven to not be behind the door in predicting the changing face of the property market with the same survey group reporting last month that only 28% of landlords expected to add another property to their portfolio in the next 12 months.

The fact that housing stocks remain low, however, is potentially more good news for the average landlord. Another property bubble could see many forced out of buying into renting ensuring the flow of tenants.