Landlords Investing More in Residential ARLA Finds

The latest study from the Association of Residential Letting Agents has found that, despite a slight softening in tenant demand, landlord investor sentiment continues to increase in the residential sector.

The latest study from the Association of Residential Letting Agents has found that, despite a slight softening in tenant demand, landlord investor sentiment continues to increase in the residential sector.

According to the report 39 percent of ARLA members believe landlords are increasing their net investments into privately rented property, up from 30 percent in the previous quarter. This, according to ARLA shows 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 percent to 14 percent, 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 percent of respondents said that there are more tenants than properties, a decrease from the 57 percent 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."

- Monday 17 June 2013

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