Rising unemployment, the possibility of future house price drops and the lack of affordable mortgage finance are three factors that will stop private landlords adding to their property portfolios in the next 12 months, it has been suggested.

According to Tom Entwistle, editor at online landlord information portal LandlordZONE, it is not surprising that just over a quarter of landlords from outside the London area are planning on buying more property in the coming year.

His comments come after the Young Group's Young Index showed that 26 per cent of those who rent property out in locations away from the capital do not expect to make further investments between now and September 2010.

"There's the prospect we face of a long, slow [economic] recovery, with unemployment likely to go on rising for some time yet,"Mr Entwistle explained.

However, the Young Index indicated that there is confidence in house prices remaining stable over the next 12 months.

Some 77 per cent of investors think London property values will remain the same or get higher during that period.

Written by Claire Doyle

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