Property activity increases in private rented sector
2nd Feb 2012
Buying and selling activity in the UK's private rented sector increased in 2011, according to the latest industry figures from the Association of Residential Letting Agents (ARLA).
The data reveals that the proportion of landlords that sold a property in the 12 months to Q4 2011 stood at eight per cent, compared to just six per cent selling homes in the 12 months to Q3 2011, while the proportion of landlords saying they had bought properties also rose from 23 per cent to 25 per cent over the same period.
These statistics suggest that landlords focused on reshaping their property portfolios during the year, with buy to let property owners in the north-west of England particularly active, as 31 per cent of respondents bought at least one property and 11 per cent sold at least one.
Landlords have also been steadily decreasing the percentage they are borrowing on each property, which could either reflect the continuing lack of mortgage finance or be a reflection of the drop in property prices in some parts of the country, said ARLA president Tim Hyatt.
He pointed to sector forecasts, which indicate that the rental sector will still offer growth in the coming year.
"Rental growth will remain robust across all sectors, albeit at a more sustainable level of around four to five per cent for this year. This will come about in part because of the continued inactivity in the sales market," he explained.
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