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Buy-to-let mortgages increase by 4%

10/03/2008

A recent survey carried out showed that buy to let mortgages had rose by four per cent. Monthly rents increased from £931 to £981 for houses and £619 to £664 for all flats.

New data from the Association of Retail Letting Agents (ARLA) suggested that in the south-east, rents for all houses had dropped by two per cent to £1,361, and a further decrease of five per cent for all flats, £882.

ARLA, Ian Potter, head of operations, commented: "Whenever property prices soften or fall, rental demand, rents and yields all increase. As we begin a year of uncertainty in the sales market, it is inevitable that our member letting agents should report that they have more tenants than properties available for them."

The growth in immigration has caused a major problem for buy-to-let landlords, this has been the case due to references now being needed, Mr Potter suggested: "The supply of property in the private rented sector must rise if we are to provide for immigration as well as all the other sectors of our society who want to rent."


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