Recovery in buy-to-let market predicted for next two years
A survey of UK lettings agencies revealed growing confidence for the rental sector of the coming 12 months.
Some 98% of the agencies responding to the survey expected the buy-to-let market to experience modest growth as confidence returns to the market.
The survey claims were made in findings published by the Association of Residential Lettings Agents, otherwise known as Arla.
Arla stated that this confidence is being driven by the growing belief that the growth in property prices over the past year has signalled the end of the fall in market values.
Average prices are expected to continue a modest growth curve as the UK slowly moves out of recession.
The survey also showed that agents expect rents to either remain at their current rate over the coming year or increase slightly.
A spokesman for Arla predicted that this positive trend may continue for the next two years as many young families continue to have difficulty securing the mortgages they need to buy their first home.
This, and the flexibility that renting a home offers, means that the balance between the supply and demand of properties may be in favour of residential landlords for the foreseeable future.
The Association also published data showing that 41 percent of its members claimed to have more tenants than available properties for rent.
This compares to the 24 percent of agents who found that they had more tenants than properties in the late summer of 2009.
