Buy-to-let sector slows says Rics

Posted: 29 Nov 2006 10:52:05 GMT

New entries to the buy-to-let market have fallen to their slowest level of growth since the second quarter of 2005, a Royal Institution of Chartered Surveyors (Rics) survey has said

New entries to the buy-to-let market have fallen to their slowest level of growth since the second quarter of 2005, a Royal Institution of Chartered Surveyors (Rics) survey has said.

Flats were the slowest-growing sector, as landlords carefully weighed new investment against profit margins affected by recent rate rises.

The number of Rics surveyors reporting rising levels of property to let fell to six per cent over the third quarter of 2006, down from 13 per cent in the second quarter.

Tenant demand remains solid, although it declined marginally compared to the previous quarter, with demand exceeding supply nationwide for the tenth consecutive quarter.

"Investors continue to express a high level of confidence in the longer-term buy-to-let market as selling activity remains low," said Jeremy Leaf of Rics.  

"With interest rates still relatively low and the economy gaining steam, first time buyers are again placing a tentative toe in the property market."

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