Mortgage News
ARLA: half of landlords looking for short-term exit
Landlords increasingly see their buy-to-let property as a short-term investment instead of a retirement plan, a study by the Association of Residential Lettings Agents, has revealed.
While three-quarters of landlords surveyed saw their property as an investment, over half of new entrants to the buy-to-let market considered it a short-term investment designed to make the most of favourable market conditions.
ARLA president Susan Fitz-Gibbon said it was important landlords had realistic expectations of their returns: “The economic downturn has brought new entrants to the buy-to-let market and has also had an impact on the way in which existing players invest.
“With more landlords entering the industry, less experienced individuals need to ensure they have thoroughly researched and fully understand that there are risks and responsibilities associated with the role.”
The study found reluctant landlords – those forced to rent because they were unable to sell – represented 28% of new landlords in 2012, compared to only 18% in 2008-9.
Parents hoping to offer financial support to their children through a buy-to-let investment accounted for over a quarter of the market.
Your First Home: confidence to build
Sponsored by Halifax Intermediaries