Cooling housing market is good news for landlords

Demand for rented accommodation is set to be fuelled by a cooling of the housing market.

That is according to the Association of Residential Lettings Agents (Arla) and will come as good news for anyone with buy-to-let mortgages.

Some investors may be concerned that recent house price indices have shown that property values are falling and might assume that this will lead to an increase in buyers and a reduction in tenants.

However, Malcolm Harrison, spokesman for Arla, said that this is not the case as potential buyers will be unsure about investing in a market which is cooling.

"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," he commented.

Mr Harrison went on to say that there is good reason for those with buy-to-let mortgages to be optimistic "because of the extra demand that’s coming in from the rental sector, which will only increase if house prices do drop".

Rightmove recently revealed that UK house prices fell by 2.6 per cent in August.

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