Landlords increase buy-to-let purchases

News Category: Industry News

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Landlords are moving to take advantage of falling house prices by purchasing more properties for rental, according to a new Arla survey.

Figures collated by the letting agent association have revealed an increase in the number of buy-to-let landlords purchasing homes for their rental portfolio in the second quarter of 2009.

Around 16 per cent of letting agents polled stated that landlords had bought new properties in the last three months, compared to eight per cent in the first quarter of the year.

The increase was attributed by Arla to falling house prices and mortgage payments, as well as a desire to invest in concrete assets rather than savings accounts with limited interest.

Ian Potter, operations manager at Arla, said: "Each quarter we glimpse a bit more activity as the bargains get snapped up and confidence is restored in buy-to-let as a viable long-term investment vehicle, particularly if the returns are rising too."

The news echoes advice given by smartlandlord last week which suggested that low capital values and stabilising rental prices could mean that now is an ideal time for landlords to invest.

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