Buy To Let Information
Buy To Let Information | The Source of Free Advice for Landlords
Buy to let information is essential to get the best from the buy to let market. One good source of buy to let information is the Association of Residential Letting Agents (ARLA), which pioneered the buy to let scheme ten years ago.
ARLA's buy to let information suggests that BTL has helped to stabilise the housing market, with lower default rates than in the main mortgage market. Buy to let has helped provide homes for people who are suffering from the rise in property prices and the shortfall in new property construction. The information from ARLA also suggests that most of the people renting BTL properties are young adults, who form the backbone of the rental sector while waiting to build up savings and buy their own homes. The information also suggests that the average age of home ownership is at least a decade older than it was. Other research has put the average first time buyer age at around 33.
The information provided by ARLA also focuses on the buy to let market. For example, the buy to let information notes that there are now more than 750,000 buy to let mortgages worth £84 billion. According to ARLA's information, this sector is a major industry, with around six per cent of all UK households in B2L property. The sector is reported to contribute four times as much to the British economy as the motor industry and at £30 billion, its contribution is more than that of all the pubs, restaurants and hotels in the country. This is a surprising piece of information.
BTL And Private Rental
The information from ARLA also suggests that B2L has spread the private rental sector to areas that previously had little private rented accommodation. This is because landlords have gone to untapped areas looking for buy to let opportunities. At the same time, according to the buy to let information, there is increased competition in the private rented sector, which is good news for tenants. More competition means a better standard of finishing, something which should be increased by recent government legislation on houses in multiple occupation (HMOs). This means more choice for tenants and more people willing to rent, which is good news for buy to let landlords.
But what about the landlords? ARLA's buy to let information suggests that most landlords in this sector are relatively young, with about half of them under 40. According to the buy to let information, many landlords have invested recently, with a fifth becoming landlords within the last few years and two thirds in the sector for less than ten years. Most BTL properties are owned by landlords with about ten properties, with few landlords owning more than 25. ARLA's information suggests that three quarters of landlords have four or fewer properties, with 45 per cent owning only one property.
Who knows where the Buy to Let market is heading? Will it grow, will it shrink or will it remain pretty stable? What we do know is that there is plenty of demand for buy to let mortgages and with recent house price falls the professional investor is keen to take advantage of this. Demand for buy to let is very strong and with this in mind we expect the market to at least remain stable and potentially grow in size in the medium to long term.
