Cash investors with an eye for repossessions are reviving buy to let market
Buy to let investors are returning according to the latest figures which show estate agents reporting an increase in landlords buying investment property in the past three months.
Figures compiled by RICS showed an increase of 2% in the number of surveyors stating an increase in demand rather than a fall in property investment in the three months leading up to September.
However, investors are no longer showing interest in city centre apartments. RICS reported increased demand for houses, with 5% more surveyors reporting an increase, but there was a sharp drop in demand for apartments, with 15% of surveyors reporting a fall.
It has been added that landlords were being encouraged to shop around in the hope of picking up repossessed investment property. They had also been driven to property by fairly poor returns from other investments, such as savings accounts.
Those investors with cash to invest are at present attracted to residential property at a time when prices are low compared to the peak. This is at the time when other investment opportunities, particularly the returns currently receivable on cash deposits, are less appealing.