Buy-to-let investors looking to add to their portfolios should protect themselves against falling house prices by targeting homes priced well below market value, an expert has suggested.

Property buyers who buy low-valued homes will give themselves good cash flow and have a buffer in place against further house price falls, suggested Simon Zutshi, founder of online advice portal Property Investors Network.

His comments come after the Association of Residential Letting Agents' annual report showed that more private landlords were taking a long-term approach to the market than the previous year.

It found that the number of landlords who do not expect to sell off their homes during the next year increased from 77 per cent to 88 per cent in 2008.

Property values will increase again once the market recovers, but investors should, in principle, buy as if prices will never go up again, Mr Zutshi said.

"You are buying a good asset, as it's giving you good cash flow …but if it goes up [in value], which we believe it will, then obviously that's a bonus,"he commented.ADNFCR-2002-ID-19014729-ADNFCR

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