UK landlords not looking to sell
The sliding property market and credit markets in Europe and the UK have not caused UK landlords to sell off, one report says. Instead, they plan to hold onto property for 15 to 20 years.
According to the Association of Residential Letting Agents, there is no major sell off in the works for most landlords. Some 90 per cent of landlords plan to keep properties rather than sell them, most planning to hold for at least another 15 years.
With fears of a weakening property market in the UK, many investors see this as a time to reinvest. Incredibly, 40 per cent will additionally add to their investment through adding new buildings. This is good news in a property market that seems to be slipping across the country and in other key countries around the world.
Ian Potter, who is Head of Operations at ARLA, says, "This is good news for the whole of the Private Rented Sector and for the housing market, particularly as it comes from surveys carried out well after the credit crunch had begun to bite."
According to the survey done by the ARLA, Buy to Let investors did see a drop in the amount of borrowed funds for property purchase, down to 70 per cent from 74 per cent in the last quarter. They association also monitors the length of time that investors will hold onto properties. Just 2 per cent will use Buy to Let investment serve them short term while 12 per cent see it as an investment for five years or less. The average is just under 17 per cent, which has been a consistent number of the last 36 months.
The information brought into this survey is information provided by investor landlords, particularly those that subscribe the Buy to Let website. Additionally, member letting agents also provided information for the survey.