According to the Association of Residential Letting Agents, confidence in the buy-to-let market is still strong, with six out of ten landlords saying they are looking to increase the number of properties that they hold.
The research also showed that investors were looking to hold onto their properties for around 20 years or more and that tenants are staying in rented accommodation for longer, on average 17 months. A spokesman for the Association of Residential Letting Agents said that what is happening now is a consistent and sustainable slow growth in the buy-to-let market.
Our view
Investors in the buy-to-let market should take notice of the new rules which protect the deposit paid by tenants. The new ruling will come into force on 6 April 2007. The rules do give landlords a choice of several Assured Shorthold Tenancy agreements which act as a safety net for landlords and tenants and failure to sign up to one could incur a fine of up to three months rent. You have been warned.