Knowledge Centre
30th March 2009
For the first time in two years, more landlords are buying properties than are selling, according to a survey of agents for the Association of Residential Landlords (ARLA).
In its latest Review and Index, 8.2% of estate agents reported that landlords were buying more properties during the first quarter of 2009, up from just 3.5% for the previous three months.
Meanwhile the proportion of agents reporting that landlords were selling more properties fell from 7.0% to 4.7% over the same period.
ARLA believes that the information - which comes from 535 letting offices run by members firms and 388 investor landlords - signals a change in the confidence of investors in the buy-to-let market.
However, it seems that this is yet to benefit investors' finances, with average rental returns for houses slightly down and returns on flats the same as in the previous survey.
According to the review, the improvement in the market has taken place despite the number of residential properties available for rent exceeding tenant demand - the result of "reluctant landlords" putting their property up for rent while they are hard to sell.
In all, 77% of those managing properties in what ARLA calls 'Prime Central London' reported supply outstripping demand, with the proportion falling to around two-thirds for the rest of the country.
ARLA operations manager Ian Potter said: "These figures do not represent a move back to the imprudent days of landlords being indebted to an irresponsible level and struggling to repay their many mortgages.
"Rather it shows that the buy-to-let market is going back to basics, to what it was originally meant to look like and achieve when it was set up some years ago."
Meanwhile, Bank of England figures have shown that there was an increase in the level of mortgage approvals in February.
IMAGE Toby Melville/PA Archive/PA Photos
Landlords 'starting to buy again'
In its latest Review and Index, 8.2% of estate agents reported that landlords were buying more properties during the first quarter of 2009, up from just 3.5% for the previous three months.
Meanwhile the proportion of agents reporting that landlords were selling more properties fell from 7.0% to 4.7% over the same period.
ARLA believes that the information - which comes from 535 letting offices run by members firms and 388 investor landlords - signals a change in the confidence of investors in the buy-to-let market.
However, it seems that this is yet to benefit investors' finances, with average rental returns for houses slightly down and returns on flats the same as in the previous survey.
According to the review, the improvement in the market has taken place despite the number of residential properties available for rent exceeding tenant demand - the result of "reluctant landlords" putting their property up for rent while they are hard to sell.
In all, 77% of those managing properties in what ARLA calls 'Prime Central London' reported supply outstripping demand, with the proportion falling to around two-thirds for the rest of the country.
ARLA operations manager Ian Potter said: "These figures do not represent a move back to the imprudent days of landlords being indebted to an irresponsible level and struggling to repay their many mortgages.
"Rather it shows that the buy-to-let market is going back to basics, to what it was originally meant to look like and achieve when it was set up some years ago."
Meanwhile, Bank of England figures have shown that there was an increase in the level of mortgage approvals in February.
IMAGE Toby Melville/PA Archive/PA Photos
Tags: Landlord
Post to:
What are these?
No comments have been published yet.
- 20th January 2011 Unemployment figures hit 2.5 million
- 14th January 2011 Government 'must introduce fuel duty stabiliser'
- 7th January 2011 FSB call 'to reverse VAT rise'
Site by Acknowledgement