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Sales boom stifles potential rentals

Ryan Fowler

March 24, 2014

The report, published quarterly, found that just 13% of letting agents have seen an increase in property entering the rental market because it cannot be sold.

The figure represents a fourth consecutive fall, as when polled in 2009 94% saw an increase.

Ian Potter, managing director of ARLA, said: “The resurgence of property prices and buyer demand in many areas is reducing the number of so-called accidental landlords.

“Despite the reduction of landlords in this situation, wider investment in rental properties remains strong across the market.

“The shape of the private rented sector is changing once again, with long-term landlords returning to the fore.”

The vast majority of landlords are now investing in the long term, with the average time between purchase and sale now standing at 19.8 years, compared with 16.4 years in 2009.

45% of landlords let their property to achieve a combined yield from rental income and capital appreciation, while nearly four in 10 want a ‘nest egg’ for their long term future.


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