Landlords' buying and selling spree due to slow down

Latest figures from the Association of Residential Letting Agents show that the proportion of landlords who bought and sold properties in 2011 increased as the year went on.

The proportion of sellers rose from 6% to 8%, while the proportion who bought went from 23% to 25%.


Landlords in the North-West of England were particularly active, with 31% of respondents buying at least one property during the year, and 11% selling at least one.


In contrast, the number saying they expect to acquire further properties this year dropped slightly, from 27% to 25%, while the number saying they expect to sell rose from 8% to 9%.


Landlords have been steadily reducing the percentage they are borrowing on each property, so that it is now just 46%.


Tim Hyatt, president of ARLA, said: “Rental growth will remain robust across all sectors, albeit at a more sustainable level of around 4% to 5% for this year.

“It will be nothing like the growth we have seen for the past two years, but the private rented sector still represents substantial value for investors looking to enter the market or increase their participation.”