The tenant eviction and rent recovery firm added that whilst increased tenancy demand has allowed investors to charge record rents and shorten void periods, it said few landlords have been able to capitalize and expand their portfolios with the finance drought. .
As a result, many landlords have opted to put their expansion plans on hold, instead focusing their efforts on the performance of their current properties, said the firm.
Graham Kinnear, director of Landlord Assist, said: “This year has been a year of landlord consolidation. Landlords have been happy to bide their time for better rates and have focused their attention on getting their existing stock performing to ensure they are as resilient as possible for potential interest rate increases.”
He added: “The buy-to-let sector can play a pivotal role in addressing the shortage of quality housing. However, only when lending restrictions are lifted can we expect to see the supply and demand of rental properties balance itself out.”
Despite these concerns, Stephen Parry, commercial director of the firm, expects rental demand will stay high throughout 2011.
“Many would-be first-time buyers have opted for rented accommodation due to the lack of availability of mortgage funding and instability of the market. At the same time tenants already in rented properties are extending their tenancy agreements and are renting for longer periods. We expect these factors to continue to define the market during 2011.”
