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If you are considering property investment, a top London estate agent has reminded people that buy to let is now a long-term investment strategy.

Tim Hyatt, head of UK lettings at London estate agents Knight Frank, says: “It is not easy to tell clients that they need to drop the price of their property by at least 15% – if not 20 to 25% for larger properties – as we are in the early stages of a global recession. However, the reality is that we have up to three times as many properties on the market than this time last year.

“Nevertheless, we expect the lettings business to continue growing next year. Renting has become an acceptable medium-term option for many people and its flexibility will continue to appeal as the economic downturn continues. The changing climate will also make investment more appealing for rental returns alone.”

This cannot be overstated – more and more people will be looking to rent, not buy in 2009. So even if a property falls in value, rental income will be constant, your investment can remain safe and you can sit back and wait for the upturn, whenever that might be.

Hyatt adds: “Landlords can be cautiously optimistic but need to be very flexible as they enter the New Year if they are to prosper in this difficult market.”

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