Wednesday, January 16, 2013
The latest market data from the Association of Residential
Lettings Agents (ARLA) has revealed an upward trend in landlord
investment over the past 12 months.
The average number of buy-to-let properties owned by landlords
peaked at eight in the final quarter of 2012, up from seven at the
beginning of the year. The apparent rise in confidence in the
market also prompted increased landlord activity, with 29 per cent
stating they have bought a property in the past year compared to 25
per cent at the start of 2012.
The rise in landlord confidence is also reflected in the jump in
value of buy-to-let mortgages, with an 8 per cent increase in the
final quarter of 2012 totalling £4.2 billion according to CML.
Ian Potter, Managing Director of ARLA, said: "The latest data
from ARLA suggests that landlords are carefully but concertedly
increasing their portfolios; activity is returning to the
buy-to-let market. Whilst many investors naturally remain cautious,
the climb to an average of eight properties per landlord shows that
2012 was a strong year for the PRS."
Despite wider economic uncertainly, the latest ARLA data
indicates that rental properties continue to be attractive
investment prospects for landlords, driven by increased consumer
demand as consumer home ownership levels decline.
Ian Potter said: "The PRS will continue to be a home for
investors throughout 2013, and strong tenant demand coupled with
affordable house prices in some areas will help to sustain the
sector's growth. It also means there is increased need for higher
standards in the sector, to ensure the growing number of tenants
and landlords are protected."