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Landlords increasingly more positive about prices

London remains the preferred location for investors; 53% are considering buying additional property in the capital within the next 12 months (a similar level to the previous quarter although still down from the peak of 64% in Q1 2008). This compares to 26% of investors who are considering adding UK property outside of the capital to their rental portfolios.

However, the results from the Q3 2009 survey of investor market sentiment show that the percentage of investors who expect to acquire additional properties over the forthcoming 12 months is stabilising.

Neil Young, CEO of Young Group, said: "Our Young Index results for Q3 show that landlords are increasingly positive about the property market; a rising proportion believe that capital values are set to increase over the next 12 month, albeit by a very small percentage.

"From a practical point of view, it appears that landlords are fully aware of the current difficulties in securing buy-to-let mortgage funding to acquire additional rental property and the proportion of those who expect to add to their property portfolios is levelling off."

Some 57% of landlords cited a lack of access to appropriate mortgage finance as the main barrier to additional property acquisitions.

Young said: "To some extent the number of available buy-to-let mortgage products is irrelevant, what’s needed is a sensible approach to lending with appropriate products, stability, consistency and certainty."

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