Buy-to-let maintains optimism
by Gill Montia
The Association of Rental Letting Agents (Arla) is predicting continued expansion of the buy-to-let sector, as the majority of investment landlords plan to expand their portfolios in the coming months.
Despite recent interest rate rises, most buy-to-let investors believe the cost of loans will remain relatively low and 54% of those responding to the Arla survey were still seeking to increase their property holdings.
In addition, 90% of investment landlords said they would not sell should house prices fall.
This level of optimism is surprising, given the continued credit squeeze and the level of lenders’ concerns over their exposure to bad loans.
However, a significant minority of respondents (28%) expect to be selling some property in the near future.
According to Ian Potter, Arla operations manager, this marks a shift in attitude among individual investors which could “seriously affect the rental market and severely curtail choice in housing”.
At the same time, over half of all landlords surveyed by Arla are investing for long term capital gain, very few, only 2.5%, look to make short term capital gains.
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