Oversupply ''may case problems for property investors''

New apartments are oversupplied in some city centres and so buy-to-let investors should exercise caution when buying them, according to one expert.

Tom Entwhistle, the managing director of property portal landmordzone.com, said that there is plenty of demand in London but other city centres, particularly ones with large blocks of new apartments, may spell danger for investors.

He said: "Some people are sitting on empty apartments just hoping the price is going up and they don''t want the hassle of letting them.

"That would be a problem if the market did turn."

He added that if the market turned all the empty flats would come back along with everyone else''s and prices would collapse.

However British landlords for the most part remain upbeat about the property market and 53 per cent of them intend to stay in the buy-to-let sector for at least another ten years, according to a report from Alliance & Leicester.


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