Buy-to-let property on the rise

A report by the Association of Residential Letting Agents (ARLA) says that purchases of buy-to-let property by British landlords are on the rise.

The report states that low lending rates on buy-to-let loans and record low property prices are responsible for increasing demand for buy-to-let property.

According to the ARLA, 8 per cent of agents reported that landlords had purchased new property in the first quarter of 2009. The figure has risen to 16 per cent for the second quarter.

The report suggests that the lower base rates set by the Bank of England are starting to bring lending rates down.

The ARLA stated that property prices may have fallen to their lowest point, making this the ideal time to buy a rental property. However, the report warned that rental prices were also falling, making buy-to-let property less valuable.

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June 24^th 2009

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