Property market ideal for landlords

Evidence continues to mount that market conditions will benefit landlords with rented property insurance for some time to come.

The latest verdict comes from independent letting specialist Leaders which says the new year has got off to a strong start for lettings, with demand for quality rental accommodation at an all-time high.

January is traditionally a busy month for lettings, but this January Leaders said it had seen a significant increase in people looking for somewhere to rent.

During the first three weeks of 2011, 15% more prospective tenants registered with the agency to find rented accommodation, compared to the same period last year.

Managing director, Paul Weller said: "We are seeing ideal market conditions for landlords at the moment, with top-end rents being achieved in many areas, relatively cheap lending and strong demand from professional tenants, which shows no signs of abating.

"For those considering letting for the first time, or extending their portfolios, now is the perfect time to enter the market – with some great opportunities for purchasing property and a better choice of buy-to-let mortgage products now available. For homeowners who would like to move but cannot sell, letting could be the ideal solution until the sales market improves."

Leaders reports that demand is high for all types of good quality property – from small studio, city centre apartments to large family homes in village locations. Good quality means well-presented, with modern kitchen, bathrooms, fittings and fixtures.

Looking forward into 2011, Leaders believe that the improvement in buy-to-let lending and favourable market conditions will lead to more landlords entering the market and existing landlords expanding their portfolios this year, with rents likely to remain stable.

Weller said: "There are numerous buying opportunities for the informed investor who is investing for the long-term. The key is to secure a property that gives a positive cash flow in an area with a long-term strong rental demand. That is why investors should seek expert guidance on exactly what and where to buy: to ensure the success of your investment and avoid any unnecessary void periods."

According to Leaders, residential letting remains an excellent investment in the long-term. The proportion of households in the UK in private rental accommodation has been growing steadily, from 10% in 2001 to 14% today.

No matter the strength of the property market, landlords should always make sure they protect their investment against unforeseen circumstances by taking out the right level of landlord house insurance.