Buy to let market 'will have a good year'

27 January 2010

Written by David Whittaker

Buy to let landlords may have seen an influx of tenants because of the high cost of housing.

Renting can offer tenants a flexible option and may be more fitting for many working people in the current climate, according to chief executive officer of upad.co.uk James Davis.

Mr Davis made the comments following a survey from the Association of Residential Letting Agents (ARLA), which reported a rise in the number of reluctant tenants.

"It will be a good year for landlords … it is the smart people that are renting because it is reacting to a flexible working lifestyle," Mr Davis commented.

He predicted that the so-called reluctant landlords were those first-time buyers who were struggling to get finance to purchase property and turned to renting instead.

Landlords will see "plenty of opportunity" to purchase new property and coupled with this influx of tenants, the buy to let market should have a good year, Mr Davis continued.

Some 41 per cent of ARLA members reported that there were more tenants than properties in the final quarter of 2009, an increase from 24 per cent who said the same in the previous quarter.

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