UK Buy to let market ‘remains strong’

Some buy to letlandlords are looking to increase their property investment portfolios as their section of the market shows ’strong resolve’. Research from the Association of Residential Lettings Agents (ARLA) shows just 1.3 per cent of landlords are expecting to sell due to current market conditions.

A further 7.3 per cent may alter their portfolios and four in ten are considering expanding them over the next 12 months. The statistics come from a quarterly survey of landlords and the ARLA Review and Index, published on Monday. ARLA head of operations Ian Potter said:

“Buy to Let landlords are confirmed as prudent investors for the long term. These investors understand the realities of the investment market they have chosen.”

Further figures from the ARLA review show a rate of return on investment from the cash purchase of investment property of 10.82 per cent, averaged across all areas. For geared purchases the rate of return is 20.86 per cent. The figures assume an investment over five years and include capital appreciation and rental yield.

Mr potter added: “This understanding by buy to let investors would appear to be far greater than the understanding shown by investors in many other markets and is proving to be a bonus for the nation’s housing problems. There is no one else investing in residential housing at the moment.”

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