Shortage could play into landlords hands

Landlords could capitalise on under investment in housing development.

The latest figures in the Financial Times highlights research that suggests that the number of new homes built by 2012 will fall to less than half the level required.

Housebuilding has been slashed since the credit crunch started in 2007 as housebuilders have cut production inorder to rebuild their balance sheets.

Savills research suggests mounting demand for housing will result in a cumulative deficiet of over 1m homes between 2008 and 2020.

All this is inevitably good news for landlords as lower levels of supply will inevitably force up rents and property values.

It appears that patient landlords could well prosper in the coming decades unless housebuilders expand production.


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