The speed at which landlords are purchasing residential properties seems to be increasing, according to figures released by the Association of Residential Letting Agents (ARLA).
Their figures indicate that the first quarter of this year saw 8 percent of agents report that they had landlords who were purchasing new properties, and the second quarter has seen the figure increase to 16 percent.
Experts looking at this figure are indicating that the increase has two causes. The first is the fact that bank interest rates have remained at their historical low. There is even evidence that the all time low base rates are beginning to have an effect on buy to let loans.
The second reason being quoted is the fact that many experts believe, and are being vocal about their belief, that house prices have bottomed out in the UK. This clearly means that anyone who has cash available will never have a better chance to grab a bargain.
It is great to see landlords getting back in the game and increasing their portfolios, if indeed they are. The buy to let sector has had it particularly hard over the last year and it would be fantastic to see some signs of recovery in this area. The evidence at the moment is hardly conclusive but it is enough to give us a little bit of hope.
