» Click here for the original article

The UK is not building enough houses, meaning the demand for property is getting greater – a tough situation, but one all good landlords could take advantage of.

The Royal Institute of Chartered Surveyors has found that in May there was a reduction in the level of housing stocks on surveyors books, which has begun to provide some support for property prices through increased demand, but is still hindering people in their attempts to buy a home.

The number of surveyors seeing an increase in new enquiries edged up again in May, but new instructions are continuing to fall. As a result, the average number of properties on surveyor's books has dropped in the past month to 58.4 from 69.4 – they have fallen by more than one third over the past year.

RICS says the lack of new supply, coupled with the increase in activity, is now providing some support for house prices. This is being most visibly seen in the sales-to-stock ratio, widely seen as a key indicator of market slack, which saw a sharp increase from 15.2% to 20.1%.

RICS says: "On the face of it, the housing market does appear to be close to bottoming out. However it is important to remember that the lack of supply has been as important in underpinning prices as the rise in demand. Moreover, with the economic backdrop still quite uncertain, unemployment is set to continue increasing sharply and finance for first time buyers is still in short supply, there are a number of significant obstacles for the market to overcome over the coming months."

The longer the UK is starved of new homes, the more landlords will be able to reap the benefits of a glut of renters. But to be sure of making a profit now, landlords must have the best rental mortgages they can possibly get hold of. If you think it's time to brush down your portfolio, talk to a mortgage adviser about your options.

SOURCE: RICS, 08/06/09

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog