ARLA forecasts buy-to-let turnaround before the end of 2010

By the end of 2010, the Association of Residential Lettings Agents (ARLA) predicts there will be a revival in the buy-to-let market.

As house prices continue to fall and interest rates on savings remain low, many investor landlords will be tempted back into the buy-to-let market, according to ARLA’s operations manager, Ian Potter. He adds that landlords who have been forced by the economic downturn to rent out their second homes, will have enjoyed the benefits of their rental income and may even be tempted to expand their portfolio.

Potter explains, “we’re expecting to see a good deal of investor landlords enticed back into buying up properties, as they recognise that bricks and mortar are still the most solid long-term investment.”

He adds that some properties have reduced in price far more than others, and, in turn, he expects these to increase more rapidly in value when prices start to recover in 2010.

The advice for people looking to invest in buy-to-let in the year to come is to concentrate on buying in areas with high employment or a large student population, as these are more likely to attract tenants and those looking for short-term lets.