Buy to let still booming

30 November -0001

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In the face of the market slowdown, buy to let investors reamin remarkably upbeat despite reports of a marked slowdown in the property market. According to research carried out by the Association of Residential Letting Agents (Arla), many are still increasing the size of their portfolios.

The average size of buy to let portfolios has increased by almost 2 properties since this time last year. From 4.1 properties in June 2004, to 5.7 this month.

According to ARLA, 97 percent of all respondents report that, although the majority of tenancies agreed are for an average initial period of just over nine months, most tenants stay on for an average total of 17 months.

This is a surprising statistic as in some areas of London, there is a deficict of tennants and it's very much a consimers market. Some tennants have been able to negotiate a cut in rent in return for signing a new lease; the Landlords are so anxious to keep good tennants.

However, all buy-to-let landlords in the UK should be aware of the Homes in Multiple Occupation requirements which come into force in October of this year. This affects all rentals where two or more unrelated people share accommodation and the legislation could affect capital values of buy-to-let properties.

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