Landlords are taking maximum advantage of falling property prices by widening their portfolios, new research from the Association of Residential Letting Agents (ARLA) has found.

According to a survey of the country’s residential landlords, the average amount of properties held rose from 6.3 to 7.0 in less than 12 months. The noticeable increase has been hailed as the end of the buy-to-let fire sale seen by owners since the start of 2008.

Ian Potter, Operations Manager at ARLA, said: “Low interest rates and proportionately higher rental yields are making the buy-to-let market attractive again to experienced investors.”

Landlords’ portfolios have seen a dramatic increase in the past decade, and, despite increasing problems in the UK economy, the average portfolio has grown hugely from the 4.0 house average seen in 2004.

Prolonged confidence in letting was also found by the ARLA’s research, as owners are staying in the market almost two years longer on average, up to 9.2 years from 7.8.

“There is a huge potential for investment at present, but take heed from the number of buy-to-let repossessions that this recession has seen and only borrow what you can realistically manage,” added Mr Potter.

Chris Norris, National Landlords Association’s (NLA) Policy Manager, said about the findings: “The reported 11 per cent increase in average portfolio size is good news for the private-rented sector. This upturn demonstrates the resilience, and counter-cyclical nature of private-renting that the NLA has long recognised.”

 

For legal help in expanding your buy to let portfolio call Mark Sadler, partner at kenneth elliott + rowe solicitors for further assistance.