30 October 2007

At a time of uncertainty in the housing market, the publication this week of the annual ARLA, CML Guide to Buy to Let will help to clarify the role of investment in residential rental housing.

This hardy annual kicks off by restating “What is Buy to Let”, and, to counter the many misunderstandings, it explains what is not Buy to Let. The Guide states that “Buy to Let is a medium to long-term investment, typically 15-20 years, and it is an investment that takes account of both capital appreciation and rental income.”

It then goes on to say that Buy to Let is not buying holiday villas abroad or speculating with buying off-plan, nor is it a liquid investment or a gamble.

“With the input of both ARLA, the Association of Residential Letting Agents, and the CML, the Council of Mortgage Lenders, this annual publication has become a prime briefing document for both new and existing investors in the Private Rented Sector,” said ARLA’s Operations Manager, Ian Potter.

The contents cover the key elements of property search, locations and property types and the sub-sectors cover residential rental investment such as Houses in Multiple Occupation and Private Sector Leasing.

There is a 12-page data section with the latest statistics available from ARLA, the CML, the Department of Communities and Local Government, and the Office of National Statistics among others.

Recognising that it is important for investors to understand the opportunities and obligations that go with Buy to Let, the Guide covers Tenancy Agreements, Tenancy Deposit Protection, insurance, legal requirements and tax.

It is also seen as important that detailed advice should be taken on the ground by regulated lettings agents and mortgage brokers, the operation of these important gateways to successful Buy to Let investment is described in full. This includes the help available to find the right mortgage funds, the budget checklist, finding the tenants, the continuing management of the investment and the ending of the tenancy.

Commented Ian Potter, “We do as much as we can within our resources to provide information on both Buy to Let and the Private Rented Sector. As well as the Buy to Let Guide, which is now in its fifth year, we provide a very detailed and popular website and leaflets on many of the areas that both investment landlords and their tenants should understand.

“Together with the CML we make all this information freely available to the public, both landlords and tenants.”

Copies of the ARLA, CML Guide to Buy to Let, published by Incisive Communications, are available from ARLA member letting agents who can be found on the ARLA website, www.arla.co.uk along with links to an electronic version of the guide and to the ARLA Group of Buy to Let Mortgage Lenders.

Buy to Let was the initiative launched by ARLA and the ARLA Group of Mortgage Lenders in 1996, to increase the quantity and improve the quality of privately rented housing. To date, Buy to Let has helped to refinance more than half of the private rented sector and, with the improved standards, to make renting socially acceptable once again.

Click on this link to view the ARLA, CML Buy to Let Guide
(Please note that your browser needs to be Flash enabled in order to view the guide online)

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