The Association of Residential Letting Agents has predicted that the fundamentals of the buy-to-let market will remain unchanged following yesterday’s base rate rise to 5.25%.
In the final ARLA quarterly review and index for 2006, more than eight out of 10 investment landlords were reported as saying that they would not sell their property investments even if house prices were to fall.
A spokesman for ARLA says: “All ARLA research shows that the majority of buy-to-let investors make a long term commitment that is measured over decades.
Built-in to this approach is the knowledge that there will be rate rises and falls and there is also an understanding of the cyclical nature of house price rises and tenant demand.
“It is also understood that rising interest rates can often lead to growth in tenant demand.