Buy-to-let sentiment bolstering rental market - ARLA
Monday, 30 March 2009 8:13 AM
The Association of Residential Letting Agents (ARLA) says landlords are buying more properties than they are selling for the first time in two years.
In the ARLA Members' Survey of the Private Rented Sector for the first quarter of 2009, more than double the number of agents reported landlords were buying properties than in the previous three months.
ARLA says this confidence has arisen despite members reporting an oversupply of properties in the rental market. This oversupply is a result of 'reluctant landlords' who are entering the lettings market due to difficulty selling their house or flat.
Ian Potter, operations manager of ARLA, said: "The data shows that there are bargains to be had in the property market at the moment for those with a keen eye. This substantiates our belief that buy-to-let remains a viable long-term investment vehicle.
"And whilst in general it appears that there is an oversupply of rental properties to let, this does not mean that in certain areas of the country there isn't a shortage of property. It very much depends on the type of property, the experience of the landlord and the quality of advice they receive that makes the difference in identifying a good opportunity to invest."
The ARLA quarterly survey also showed rental returns have remained largely consistent in the last three months since the previous report. The return on flats across the country is unchanged at 4.9 per cent whilst houses are down slightly, by 0.1 per cent, from 4.9 per cent to 4.8 per cent.
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