Buy to let sector 'on the rise again'

18 August 2009

Written by Steve Olejnik

Low interest rates, falling house prices and a strong demand for the private rented sector in the UK are all factors in the buy to let market's upturn, according to the Association of Residential Letting Agents (Arla).

With the Council of Mortgage Lenders revealing a more stable buy to let mortgage lending figure in the second quarter of this year, Arla's own research suggests that this part of the property market is on the rise again after months of low activity.

A statement from the association said: "Arla members have been reporting a rise in buy to let activity in the first two quarters of this year with around double the number of landlords buying more properties for the two consecutive quarters than in the previous three months."

Further responsible mortgage lending from banking institutions will help boost the sector further, it explained, before adding that an illiquid market is not ideal for tenants, landlords or the economy as a whole.

Earlier this week, Smartlandlord.co.uk managing director Keshav Thukaram said that anyone getting involved in the buy to let market should see their investments as a way of making money over a long-term period, not for short-term gains.

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