Rental Property Seen As Safe Investment
There has been a rise in the number of landlords expanding their rental property portfolios over the last three months, according to fresh research by the Association of Residential Letting Agents (ARLA).
ARLA questioned its members to find out if landlords are currently increasing their investment in rental properties in the private rental sector (PRS) and they discovered that the number of landlords buying properties has risen from 30% to 39% over the last three months.
ARLA have taken the responses from their members to indicate greater confidence in the UK private rented sector and that rental property is still perceived as a safe investment amidst ongoing global and national financial instability by landlords with existing rental property portfolios.
ARLA research also revealed that fewer landlords are quitting the UK private rental sector and selling their rental properties too, with numbers incrementally down on the previous quarter, from 15% to 14%.
Despite the positive news regarding residential property prices rising again at last, tenant demand in the UK has slowed slightly in the second quarter of this year.
ARLA’s research showed that 54% of respondents reckoned that there were more tenants than properties, a decrease from the 57% reported in the first quarter of 2013.
Landlord confidence is at an all time high due to the emergence of specialist products and services designed to help landlords and letting agents get the most from rental property, including comprehensive tenant referencing services and Rent Guarantee Insurance.
President of ARLA, Susan Fitz-Gibbon, said: “Our research shows that rental property is still seen as a good investment option, despite the challenging economic climate. The slight slowing in tenant demand is worth noting, but the overall trend is still a continued appetite for rental property. We urge landlords looking at changing their property portfolio, to do plenty of research and consult with experts. It is vital to ensure your investment is properly protected, using an ARLA registered agent will mean you have access to Client Money Protection and a redress scheme, as well as advice on selecting the right property at the right price.”
Landlords looking to expand rental property portfolios are also welcoming a raft of new and improved Buy-To-Let Mortgage products that are slowly being introduced to the UK mortgage market, providing mortgage loans based on the rental property’s income rather than the personal income of the landlord. Read more