The Association of Residential Letting Agents (ARLA) have revealed new research which shows a fouth consecutive quarterly drop in the number of people letting out properties because they have not been able to sell. This brings the number of so-called accidental landlords to the lowest level they have recorded since they first investigated the matter in 2009, during the post credit crunch property crisis.
In 2009, 94% of respondents to the ARLA survey said they entered the rental market because they could not sell their property. This figure now stands at 13%. Clearly the renewed ability to sell property is changing the shape of the private rented sector once again.
The vast majority of landlords now appear to be investing with long-term interests, with the average time between the purchase of buy-to-let property and its sale now standing at 19.8 years. This is an increase of 3.4 years since 2009.
Only 1.5% of respondents reported becoming a residential landlord in order to make short-term capital gains over a period of five years or less. Most landlords were found to either have let their property to achieve a combined yield from rental income or capital appreciation (45%), or to create a ‘nest egg’ for the long-term (37%).
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