Insurance News
RLA: Buy-to-let gives people financial control
12th October 2011
Property investors may soon be taking out more freehold insurance as the Residential Landlords Association (RLA) has said that buy-to-let allows people to "control their financial destiny".
While activity is far below pre-credit crunch levels, Alan Ward, the group's chairman, says that people are entering the buy-to-let market all the time.
"There will always be investors moving in and out of the private rented sector because it enables people to control their financial destiny through investment in housing," he commented.
"But the risks remain the same; values can fall as well as rise, as we have seen."
Not all areas in the UK are ready for investment but the capital continues to offer ideal opportunities for landlords.
"London is still a strong market in terms of capital growth, but the latest RLA research shows most landlords are looking at investment over 15 years," he added.
Estate agents Townsend recently reported that void periods for properties in Surrey, Hampshire and London are "virtually non-existent".
The group has advised that new and seasoned landlords in these areas not be deterred by reports on void periods which are based on national statistics.
Caroline Kavanagh, group lettings director at the estate agents, explained: "Contrary to reports of the average void period for a rental property being nearly 60 days, we are finding that demand for most rental properties across our branch network is so high that their availability is virtually non-existent."
She said that investors need to look at their individual market to gauge the average void periods and determine exactly why type of properties are in greatest demand.
Ms Kavangah concluded: "From experience there simply isn't enough property coming on to the market to match the demand and this trend shows no signs of slowing. Excess demand could continue to drive rents up further leaving landlords who think long-term in a great position."
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