|
Landlords across the United Kingdom are starting to sell their properties and are heading abroad amid fears of a crash in the country’s housing market, property analysts have warned.
Bleak real estate market conditions in the UK are forcing many to cash in on their current investments and move to foreign shores, according to Tim Warrington, an analyst with property portal landlord.co.uk.
He claims that many investors are selling their property off at the same time, which could see dozens more homes descend on the property market over the net few months.
The move could be "very damaging for the UK housing market" according to Warrington, who is urging landlords to stay put and avoid creating a "domino effect."
"Too many landlords selling in the UK could send the property market into freefall, as many properties in the buy-to-let industry are going up for sale. We believe landlords should hold their nerve through these tricky times and look at the UK as a long-term investment," Warrington said.
Gradual slowdown or major crash?
The question buy-to-let investors are asking, however, is what impact a downturn, whether a gradual slowdown or a major crash, will have on their investment. Some analysts believe that the effects will be limited.
Malcolm Harrison, a spokesman for the Association of Residential Lettings Agents (Arla), argues that, in fact, the industry could benefit. "Because buy-to-let is quite predictable, in that if there is a slow-down in house prices you know there is going to be more rental demand, and that always means the case of a thriving rental sector."
Therefore, Harrison added, buy-to-let rental demand will "only increase if house prices do drop."
|
