Should UK landlords be bullish or bearish in 2013?

James Davis, CEO of Upad, said: "The overall trend for 2012 shows a decline in confidence in the 2nd half of the year (barring an Olympic blip) as economic growth failed to pick up – generating concerns about tenant’s personal finance with bank lending continuing to be challenging and increases in rental values slowing. 

"The problems affecting the wider economy are highly unlikely to disappear in 2013 with the recent snow even tipped to trigger a triple-dip recession, so for that reason I suspect landlords to be cautious about over-exposing themselves. However, that said many of our landlords do appear to be in a far stronger place than might have been anticipated a couple of years ago." 

Indeed, this more optimistic outlook for the next 12 months is supported by IHS Global Insight economist Howard Archer who explains that despite the lack of confidence, falling house prices and low interest rates, on-going demand for rental property in the UK and higher yields have created the perfect environment for UK landlords to thrive with over 8% achievable in some UK cities such as York, as revealed by Zoopla.

The Association of Residential Lettings Agents (ARLA) has also seen an upward trend in landlord investment over the past 12 months with the number of buy to let properties owned by landlords rising to eight in Q4 2012, up from seven at the beginning of the year.  

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