With a drop in buy-to-let investors expected due to increased regulation, ARLA research conducted quarterly through its lender panel, has revealed a steady growth in the sector, with 60 per cent of landlords hoping to acquire more property over the coming year.
Of those questioned less than one in 12 viewed the market as a ‘get rich quick’ scheme with 44 per cent hoping to create a long-term nest egg for the future and the same number hoping to achieve a combined yield from rental income and capital appreciation.
Only 1.5 per cent admitted they would consider selling if house prices were to fall, corresponding with the announcement that the average length of time spent in the rental market by investors exceeded five years.
Despite fears that some of the new regulations for the private rented sector would deter investors, only 4 per cent of the buy-to-let landlords questioned expected to be affected by licencing for houses in multiple occupation.
Adrian Turner, chief executive of ARLA, said: “We have been anxious to ensure the private rented sector as a whole understands the new regulatory regime. It is clear that the typical buy-to-let landlord is not unduly worried by HMO regulation as the competitive benefits of providing their tenants with well-maintained, good quality property are obvious.”
ARLA president Robert Jordan also announced it is to work with the National Association of Estate Agents (NAEA) to prepare a report into the ‘feasibility, options and desirability of a structured relationship’ between the two bodies with the main focus on providing improved services and benefits to its members.
