"Cheap property" provides great opportunity for landlords

Posted: 28 May 2008 10:50:53 GMT

As the housing market slows and house prices fall, landlords should take the opportunity to purchase "cheap property over the next year or so", an industry expert has advised.

As the housing market slows and house prices fall, landlords should take the opportunity to purchase "cheap property over the next year or so", an industry expert has advised.

Property broker, Landlord Mortgages, has suggested that landlords should judge properties on the rental yield they are likely to get from their investment.

Lee Grandin, managing director at Landlord Mortgages, said: “A lot should ride on the likely rental yields from a property and one should expect maybe 30 per cent higher rental yield than only a year ago."

Mr Grandin advised that buyers should be looking at a 6.5 to seven per cent yield but warned that "it is difficult to call when the market has bottomed out".

Hometrack, a service that provide analysis of the housing market, reported that sellers were achieving 93 per cent of the asking price in April, compared with 95.7 per cent a year ago.

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