Property investment market analysed

Posted: 10 Jun 2009 11:32:37 GMT

More regulation of the property investment market in the UK will see larger companies and private landlords competing more equally, according to one industry expert.

Chief executive officer and founder of investment advisers Assetz, Stuart Law, has suggested that smaller landlords "will raise their standards" if new legislation is introduced to the sector.

Last month, the Association of Residential Letting Agents and the Communities and Local Government department both made announcements which proposed stricter monitoring of letting firms and landlords.

With no change regarding regulation, Mr Law asserted, larger property companies may end up taking all the UK rental business.

"If [new] regulations do not come in, [the bigger] institutions will probably deliver better quality, better run stock and over time they will squeeze out smaller landlords," the property professional explained.

The University of Nottingham recently published a report on the buy-to-let industry, which revealed some experienced landlords have acted like "vultures" since property prices dropped - by increasing their portfolios at the expense of professionals with smaller portfolios.


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