Landlords set to slow property trading in 2012
Wednesday, 1 February 2012 12:29 PM
Landlords bought and sold more properties at end of 2011 but the trend is unlikely to continue into 2012, says the Association of Residential Letting Agents (ARLA).
Its research shows that the proportion of landlords who had sold a property in the last 12 months rose from six per cent to eight per cent in the fourth quarter of 2011. The proportion who bought a new property to rent out rose from 23 per cent to 25 per cent.
Landlords in the North West were especially active, with 31 per cent buying at least one property in the year and 11 per cent selling one.
Meanwhile landlords have been steadily decreasing the amount they are borrowing on each property, which could reflect lack of mortgage finance or a fall in house prices in some areas. The current loan-to-value average of 46 per cent is the lowest seen since mid-2007.
Ian Potter, ARLA operations manager, said: "These statistics indicate that landlords changed their property portfolios throughout last year, in some cases expanding portfolios despite the gloomy economic climate.
"However, our research also suggests that into 2012 this situation might change, which could be a sign for concern. A healthy private rented sector is crucial in providing choice and flexibility for consumers across the housing market in 2012 and, ultimately, helping to provide more homes for more people."
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