Landlords see their property as long-term investments

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Landlords in the UK are committed to the sector for the long term, a new study has confirmed.

Arla's latest quarterly review and index of the private rental market found that landlords typically expect to hold onto a property for 16.5 years.

What's more, nearly a quarter of landlords said that the average life expectancy of their property investments is more than 20 years.

More than half the landlords questioned said that they were looking for long-term capital gain from their portfolio and 40 per cent said they wanted yield from both capital appreciation and rental income.

Just 2.5 per cent revealed that they were in the market to make short-term capital gains.

The review also showed that the annual rates of return - including rents and capital appreciation - for the last quarter averaged 11.34 per cent from an outright cash purchase of residential investment property and 22.26 per cent from a geared residential property investment.

Recently, the Building Societies Association (BSA) also suggested that landlords were hoping their properties would provide a long-term income. In fact, 89 per cent said that they expected to fund their retirement through their houses.

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