Residential landlords in for the long term

A review by the Association of Residential Lettings Agents (ARLA) has found that 88% of buy-to-let landlords do not intend to sell their property within the next year, with the majority looking at their investment as a long-term money maker.

ARLA figures show that investment landlords actually intends to hold onto their property for an average of 16.3 years, while 20% say they expect to still have their property in 20 years time.

ARLA says that the fact that most buy-to-let landlords do not intend to sell up, even though house prices are falling, shows these investors are helping to maintain growth in the private rental market.

The buy-to-let market remains strong, according to ARLA, which says investors report an average rate of return on their investment over five years of 21.54% on a mortgage-based investment and 10.59% on an outright purchase.

Head of operation at ARLA, Sir Ian Potter says, "again and again, these independent surveys show that Buy to Let landlords are helping to guarantee the growth of the private rented sector and these are the people who provide the housing solutions for those hit by the current recession and into the future."