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ARLA: Landlords shift from long-term to short term investors

The buy-to-let market has shifted from long-term investors to novice landlords who view property as a short-term investment, says the Association of Residential Lettings Agents.

In its report YouGov SixthSense Buy-to-let: Landlords and Mortgages, it breaks landlords into three main types – investors, reluctant landlords and good parents.

The research found that over half of new landlords in 2013 have bought property as a short term investment to capitalise on low rates and the Government’s Funding for Lending Scheme. A further 28 per cent of landlords who entered the market in 2012 did so reluctantly because they’ve had difficulty selling. The good parents it describes as those who have moved into buy-to-let to offer financial support or provide a financial legacy for their children, and they now account for over a quarter of the market.

The trade body is warning that with more landlords entering the industry, less experienced individuals need to ensure they have fully researched the market.

ARLA president Susan Fitz-Gibbon says: ”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.”



Taking Stock: Advantage brokers

It has been a splendid year so far for sports fans. Andy Murray has won Wimbledon, Chris Froome is taking the Tour de France by storm and cricketers Jonathan Trott and Kevin Pietersen are firing on all cylinders in the Ashes series. The year is also turning out extremely well indeed for mortgage brokers throughout […]


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