Buy-to-let 'bounces back'

Posted: 22 Jun 2009 11:44:37 GMT

The buy-to-let sector has bounced back in recent months, according to the Association of Residential Letting Agents (Arla).

Comparing the second quarter of the year to the opening three months, there were nearly twice as many Arla members who reported that landlords bought more properties.

One of the reasons cited for this increase was the record low interest rate set by the Bank of England's monetary policy committee (MPC).

The MPC brought the base rate down to 0.5 per cent in March and it has stayed at that level for the last three months.

Operations manager at Arla Ian Potter said: "Each quarter we glimpse a bit more activity as the bargains get snapped up and confidence is restored in buy-to-let as a viable long-term investment vehicle, particularly if the returns are rising too."

Government officials are starting to realise that the private rented sector can play a vital part in the success of the overall property market, he added.


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