Landlords still looking to buy
Landlords remain keen to buy despite softening tenant demand, research from the Association of Residential Letting Agents has revealed.
The research found that Landlord investment in residential property has increased significantly over the past three months despite slight easing of tenant demand.
The proportion of ARLA members who think landlords are currently increasing their net investment in the private rental sector by buying properties has risen sharply – from 30% to 39% – over the last three months, indicating that rental property is still perceived as a safe investment amidst ongoing financial instability.
In addition to more landlords buying properties, the proportion of landlords selling their properties is also down incrementally on the previous quarter, from 15% to 14%, again indicating sector confidence.
Despite this positive investment background tenant demand has actually weakened slightly in the second quarter.
ARLA’s research shows that 54% of respondents said that there are more tenants than properties, a decrease from the 57% seen in the first quarter.
Susan Fitz-Gibbon, director of specialist letting agents Fitz-Gibbon and president of ARLA, said: “Our research shows that rental properties are 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 homes.
“We would urge anyone planning to let out additional properties, or landlords looking at changing their portfolio, to do plenty of research and consult with experts.
“It is vital to ensure your investment is properly protected – using an ARLA 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.”
Article courtesy for Mortgage Introducer