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Arla notes optimism among buy-to-let mortgage holders

Mon, 07 Jan 2008

Amid the effects of the credit crunch and predictions of falling house prices, buy-to-let mortgage holders remain confident in the market outlook for 2008, a report has suggested.

Nine out of ten buy-to-let mortgage holders have no intention of selling their properties for nearly 17 years in findings which suggest that such landlords have not been shaken by the credit crunch, according to the Association of Residential Letting Agents (Arla).

Constant variations in the private renting market render it unsuitable for decisions to be made based on future predictions of rental values and demand levels, said Ian Potter, head of operations at the group.

Investors should stick to local advice from professionals when considering a buy-to-let property, he noted.

Around 40 per cent of landlords plan to invest further in the private renting sector this year, according to Arla's latest quarterly report.

"This is good news for the whole of the Private Rented Sector and for the housing market, particularly as it comes from surveys carried out well after the credit crunch had begun to bite," Mr Potter commented.

His comments come as a 12 per cent annual fall in all the normal house price indices has been forecast for 2008 by Paul Holmes, chief executive officer at Firstrung.
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