The renascent boom in buy-to-let is reaching the East Midlands,
according to the latest research from the Association of
Residential Letting Agents (ARLA).
According to a survey of UK landlords, conducted by ARLA and the
Residential Landlords Association, (RLA), the regions with the
highest number of landlords buying property in the last 12 months
were the North East (30%), the Midlands (26%) and the Rest of
London (26%)*.
Jill Elkington, East Midlands spokesperson for ARLA and
residentiql letting manager for Hodgson Elkington, said:
"Traditionally London has led the way with Buy-to-Let, but we are
seeing signs that investors in the East Midlands and elsewhere in
the country believe now is the time to buy - if you can arrange
finance, it could be prudent to take advantage of lower property
prices."
While landlords in Central London and the Rest of London were
most likely to buy further properties to let in the next 12 months
(33% and 30% respectively), 30% of landlords in the Midlands also
said they would be likely to buy in the next year.
In contrast, only 18% of landlords in the South West bought
rental properties in the last year, while some 10% sold - the
highest number in the UK.
The research showed that landlords in the North also have bigger
property portfolios, with an average 13 properties per landlord in
the North East and North West. In comparison, landlords in Central
London and the South East own an average 6 rental properties
each.
"Some towns across the UK including Lincoln are suitable for
rental investment as they have a high number of students, while
others - such as the recently unveiled Local Enterprise Zones - are
areas being targeted for future growth," said Jill
Elkington.
"While it is a positive sign that landlords are continuing to
purchase rental properties, this individual activity needs to be
boosted by larger-scale investment. With demand still far
outstripping supply, and home-ownership out of reach for many, it
is critical that more people have access to a home of their
choice.
"As the rental sector remains unregulated we would urge anyone
considering becoming a landlord, or thinking of renting a property,
to engage with a letting agent that is a member of an accredited
body before making a commitment. ARLA members, for example, have
industry-leading market knowledge, follow a strict code of conduct
and are licensed, with access to client money protection and a
redress scheme."
The ARLA Review and Index is available at:
http://www.arla.co.uk/buy-to-let/buy-to-let-review/2011/q2/
*'Rest of London' denotes area within the M25, but not including
Central London