Confidence vote for UK investment property lets
January 5, 2009 by OPPE News
photo credit: Larsz
Renting investment property in the UK could still be a viable and profitable option in 2009, a leading estate agent association has said.
The Association of Residential Letting Agents (ARLA) said the new year presents a “challenge and an opportunity” for the rental market.
More investor landlords will start returning to the market at the end of the year, the group said, as demand continues through the next 12 months.
ARLA also predicted 2009 would see the licensing of lettings and estate agents become a major talking point in the property world.
Ian Potter, group operations manager, said:
“I’m also hopeful that many of the ‘reluctant landlords’ we saw entering the market as a result of falling house prices will be encouraged by their rental returns and see the benefits of buying to let.
“All the market needs is a bit of confidence and then we will see it become freed up and stock moving again.”
The public and politicians are also likely to call for greater legislation of the sector, he added.
Last year all UK estate agents were required to sign up to an approved redress scheme for the first time.
The Office of Fair Trading is also conducting an in-depth study into the property market, which includes looking at how estate agents deliver services.
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I spoke to a friend of mine who used to be a landlord. He owned a couple of swanky apartments in Wilmslow. Real top notch stuff.
A couple of years ago - rent didn’t cover the mortgage - by quiet a margin. I think the mortgage was around £2,500 and rent £1,700.
He told me that rents are now £2,800 and that if he’d been able to keep on to them - he would have cleared £4,000. If’s buts - pots and pans!
Maybe now is the time to get into the market? Withe less people buying - rentals are on the up - everything is viable again.
The lesson this time is - don’t release all the equity and buy more than you can handle. It’s very tempting to over reach and get caught out. Eyes bigger than your stomach - and all that.