Buy-to-let remains a bastion of strength

Released on: May 2, 2008, 8:41 am

Press Release Author: Jim watson

Industry: Real Estate

Press Release Summary: If buy-to-let is a castle, being assailed in mediaeval-style
by a huge army, firing flaming arrows (or should that be negative headlines?) and
attempting to batter down the door with the \"credit cruncher\" siege engine, then it
appears to be a fortress that is withstanding the attack very well.

Press Release Body: If buy-to-let is a castle, being assailed in mediaeval-style by
a huge army, firing flaming arrows (or should that be negative headlines?) and
attempting to batter down the door with the \"credit cruncher\" siege engine, then it
appears to be a fortress that is withstanding the attack very well. Indeed, the
latest survey suggests many within those thick walls will soon be riding out to make
some more conquests.

This, it seems, is the picture emerging from the latest survey from the Association
of Residential Lettings Agents (Arla). In its poll of landlords, it tested the
notion that with property prices having fallen recently, investors would be leaving
the market and selling up in droves.

Not so. The Arla survey found instead that nine out of ten landlords did not plan to
sell any of their portfolio, even if there are more price falls. In contrast, 46 per
cent said they actually intend to add to their portfolios in the next 12 months.

As ever, the picture Arla paints is one where landlords tend to be in it for the
long run. To return to the castle analogy, investors are willing to withstand being
besieged for a while in the knowledge that relief will be on its way in time, while
they, having made provisions for the long-term and not simply gambled on a few quick
wins, are able to look forwards to a better future.

Those looking to win this battle are therefore heavily equipped, with an average of
seven properties each and a commitment to an average length of investment of 17
years. What may be noted is that some of these latest statistics are even better
than those of the Arla survey in January. For example, the 46 per cent figure for
prospective new investors tops the four out of ten expressing the same intention
back then, while in January the average investment time was slightly shorter at 16.7
years.

So it appears that yet again the long-term view appears to be prevailing, not only
in terms of its popularity as an approach but in the optimism that it will pay.

Of course, some have noticed the counter-cyclical element of buy-to-let property, in
which some advantages have accrued from the housing market downturn such as higher
rents due to the increased demand from those who might otherwise be seeking to get
on the housing ladder. If that is a benefit of the current situation, it is one that
is expected to remain in place after the liquidity crisis has dissipated.

This point was made by Bank of England monetary policy committee member
Charlie Bean in a speech this week. Stating that \"It is important to recognise that
some of these changes will persist beyond the resolution of the current hiatus in
mortgage markets,\" he said the higher deposits and more cautious lending decisions
will remain a feature of the property market as cautious banks apply the recent
lessons.

Mr Bean added that the MPC was \"walking a tightrope\" over rate policy, which may
lead to considerable uncertainty over what will happen next. But for those who have
committed themselves to a long-term view that can absorb the ups and downs of the
economy in the coming months, such an approach should act as a protective moat.

In today\'s world Property investment is an excellent investment option especially
investment in UK

Web Site: http://www.assetz.co.uk

Contact Details: Address:Assetz House, Newby Road, Stockport,Cheshire

zip:SK7 5DA

ph:0845 400 7000

fax:0845 400 6010

email:linkexchangeseo@gmail.com

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