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ARLA Releases Results of the Latest Landlord Survey
According to the Association of Residential Letting Agents, last year saw more private rental landlords buy and sell property, but it looks as if this won't continue this year. Their research shows the percentage of landlords selling property during the last 12 months increasing from 6% to 8% during the last quarter of the year, while the number buying property increased from 23% to 25%. However the percentage of those intending to buy properties during the coming 12 months fell from 27% to 25%, while the number of those intending to sell property has increased slightly from 8% to 9%.
Apparently private rental sector landlords have been decreasing the loan to value percentage on each property and it is now fallen to an average of 46% which is the lowest level since the second quarter of 2007 when the average loan to value percentage was 60%. Although ARLA still expects to see rental growth this year it will be considerably less than the growth seen over the last couple of years, even though residential sales are expected to remain flat this year. ARLA’s research shows that some landlords chose to restructure their portfolios last year, and even chose to expand in spite of the less than stellar economic outlook. ARLA’s advice to anyone planning to buy additional properties to rent, or anyone thinking of becoming a landlord for the first time is to do plenty of research and consult with experts such as letting agents in Nottingham who have a thorough knowledge of the local market to ensure they are able to protect their investment.