Instead, particularly if they are investing in a prime London location, they should focus on buying three bedroom properties.
That's the verdict from lettings agency Strutt & Parker who say the demand for such homes is 'insatiable'.
The firm's head of London lettings, Zoe Rose, explains: “As soon as we get a good three-bedroom property on our books it is taken in a flash.”
Demand for three bedroom properties soars
The properties are being snapped up at their asking prices which can reach £1,300 per week in South Kensington and £1,500 per week in Ladbroke Gardens.
This trend for three bedroom homes in central London has been mirrored in recent research undertaken by Rightmove which revealed that of its top 5,000 most viewed properties, more than a third were for three bedroom homes.
In addition, Strutt & Parker say they have seen rents increase by 2% this year in central London and these look set to increase by a further 2.5% next year too.
The number of tenants in London continues to grow
Ms Rose explained: “This is slow but steady growth which is underpinned by so many people who cannot afford to buy a home and will continue to rent. There's also a large number of people who enjoy the flexibility of renting.”
The firm says it currently has 25% fewer properties on its books for central London than it did this time last year while tenant registrations have rocketed by 63% in the same period.
This means that opportunities for buy to let investors in central London are looking increasingly profitable as rental property supply increasingly fails to keep up with demand.
Landlords given new power to evict anti-social tenants
Meanwhile, amendments to a law have handed landlords new powers that will speed up the eviction of their anti-social tenants.
The idea is to make the securing of a possession order much easier, and it should take less than the current average of seven months.
To do so, social and private landlords can now use a tenant's previous convictions for serious anti-social behaviour for them to begin eviction proceedings.
Brandon Lewis, the housing minister, said: “Lengthy court proceedings have left nightmare tenants free to cause misery to their neighbours and no one deserves to feel intimidated or unsafe.
“Now these new powers will mean landlords can take swift action to evict a tenant convicted of serious or persistent anti-social behaviour which should bring fast relief to witnesses and victims.”
