Landlord report indicates healthy Investment outlook for buy to let
Buy to let investors have not been put off by the recent conflicting reports about the state of the housing Market. According to the second quarter's survey of 10,000 Landlords on the ARLA Buy to Let website
Results, due to be published on the 27th of June show nearly two thirds of all landlords expect to acquire further investment property in the next twelve months. The expected lifespan of a buy to let investment is 16.2 years and even if house prices fall, nine out of ten landlords indicate they will not sell.
"We believe that Investor Landlords do their research and know and understand the investment market in residential property to rent. They also feel secure in the knowledge that their investment cannot steal away in the night," said Adrian Turner, Chief Executive of ARLA, announcing the latest quarterly survey results.
A high proportion of these investment landlords have been active in the buy to let market since 2000 with 15 percent having more than ten years' experience in the market. The Landlords Surveyed held an average of five properties.
Virtually half of all respondents say that they have invested in buy to let properties to create a nest egg. 43% look for rental yield as well as capital appreciation but only 6% have invested solely for the income. A negligible number, just 2.7%, invest for short term capital gain.
Investor landlords surveyed indicate that tenants stay for an average of 17 months, regardless of the length of the initially agreed term. Only one in eight, 8.5%, found that tenants stayed for between six and nine months, which is the average length of an initial tenancy agreement.
Full details of the ARLA Review and Index and the Quarterly Surveys are available on the ARLA website, www.arla.co.uk.
23rd June 2006
