Lee Grandin, managing director of Landlord Mortgages, commented: “The Association of Residential Letting Agents (ARLA) recently revealed, that with the exception of London, landlords are most likely to opt for properties that are less than ten years old. This is a very worrying statistic as it means that rather than purchasing a property and making improvements to add value, these property investors are heavily reliant on capital appreciation.
“This is not a problem in a steadily growing market but if we should experience any sort of slowdown or stagnation, landlords who decide to sell will be left with very little profit from their investment. Indeed, if the market should fall, they may even find themselves owing their lender money.
“We recommend that property investors avoid new build properties and those which require no improvements or renovation. It really does pay to find a property that needs some TLC.”
