Rise in prices cuts out dead wood in rental market
As the fragile property market keeps its upward trajectory for another month, prices keep rising and precious consumer confidence is holding, there is one part of the property market which is only happy enough to get out of the system. The buy to rent market was one of the driving forces in spiraling property prices in the UK and the ‘bull market’ finance sector dealing that led to the undermining of the whole of the finance sector. With prices rising many landlords are cashing in their chips and gradually selling up.
Reluctant landlords who were hanging onto their properties while the drop in prices lasted are selling in increasing numbers, the Association of Residential Lettings Agents (ARLA) have found that almost a half of landlords in the Greater London area were reluctant or accidental landlords who struggled to sell their property, now it seems the numbers of these landlords has dropped by around a third in the last couple of months.
Is this a promising sign of continued recovery or just a further risk to the recovery with a small blip on the property radar whcih lowers prices and creates a buyers market?