Newsfeed
Archive
Buy to Let & Residential News
Landlords 'providing housing solutions in the downturn'
2009-01-12
Buy to let mortgage holders are providing housing options for Britons affected by the recession in the UK economy.
According to the Association of Letting Agents' (Arla's) quarterly review and index published today, investors with buy to let mortgages are behind the "core growth" of the private rented sector.
Statistics from the group found that 88 per cent of landlords do not intend to sell their properties over the next 12 months, compared to 77 per cent in the last study.
Furthermore, one in five buy to let investors expect to keep their properties for more than 20 years, with the average life expectancy of a rental property calculated to be 16.3 years.
During the last five years, landlords have seen typical return rates of 10.59 per cent for a cash purchase and 21.54 per cent for a mortgage-backed investment in the buy to let sector.
Ian Potter, head of operations at Arla, said: "Buy to let landlords are helping to guarantee the growth of the private rented sector and these are the people who provide the housing solutions for those hit by the current recession."
A spokesperson for Arla last month predicted a "patchy" outlook for the private rented sector in 2009, with local markets likely to "vary tremendously".
For a no obligation [buy to let mortgage quote] click here.
Related Buy to Let & Residential News
High rent charges 'should ring alarm bells'
Bargain prices in the south, expert says
Appliance servicing 'safe and cost effective'
Landlords could face 'struggling tenants'
Minister promises greater security for tenants
Click to view the News Archive
