Arla predicts investor return

News Category: Industry News

Investor landlords are to return to the property market by the end of 2009, one industry body has suggested.

The Association of Residential Lettings Agents (Arla) has predicted that there will be a "revival" in the buy to let property sector in the coming year, with many investors stepping up their property purchases as they "recognise that bricks and mortar are still the most solid long-term investment".

Operations manager for Arla Ian Potter stated that the continuing fall in house prices will help tempt landlords back to the market, noting that property is likely to be a better form of investment given the potential impact further interest rate drops will have on savings accounts.

And he also expressed hope that the number of "reluctant landlords" who entered the market due to their inability to sell property may remain in the sector in the coming year.

Those looking to invest in property may wish to consider making purchases in London, where - according to recent Knight Frank figures - rental yields in prime central areas are increasing.

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