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ARLA sees strong market

27th June 2006 | back to article listings BACK    print this article PRINT

The UK's buy to let industry looks set to continue its impressive growth of the last few years, according to one industry group.

The Association of Residential Letting Agents (ARLA) has revealed that many landlords are in the property sector for the long haul and are not being frightened off investing by talk of an interest rate rise. It has been rumoured that there could be an increase in interest rates before the end of 2006 and there have been fears that such a move could trigger a depression in the property market.

However, while that may put off many first time buyers, ARLA's study suggests it will not be enough to stop buy to let landlords investing in the market. According to the research from the group, almost two thirds of landlords are eager to increase their portfolio in the next 12 months, while nine in ten landlords stated that they would not be looking to sell off any property during the same period.

Therefore, the UK's buy to let property market looks set to see a continued growth in prices investors scramble for available properties. Demand is set to soar, meaning that the number of buyers in the market will far outnumber the available properties.

ARLA's report highlights the increasing maturity of the buy to let market in Europe, as more and more British investors are prepared to be in the sector for the long-term, meaning that short-term considerations such as a rise in interest rates are not having much impact on the market.

"Today is always better than buying tomorrow. It's always a long-term investment," commented Lynsey Scrivener, director of marketing and PR, at specialist buy-to-let broker, The Money Centre.

This view was backed up by Stuart Law, managing director of Assetz, who explained: "Investors are being confident that the prices will rise in the long term."

Mr Law added: "What we are now seeing is there were far less speculative investors in the market place than people thought. So investors are investing for the long term."

He went on to state that, while property prices have been slowing, investors remain committed to the "long-term view". Because of this, the property market looks set fair for the months ahead, particularly in the buy to let sector, where long-term considerations are ensuring a healthy future.

While the general market begins to wobble and first time buyers in particular have been put of getting onto the property ladder for the time being, conditions for buy to let investors appear particularly healthy. As more first time buyers opt to rent, it is little wonder that ARLA's survey found so much optimism among landlords.

This is a press release by Assetz also available at http://press.assetz.co.uk/articles/2787.html. Alternatively, please see our full press release archive.

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