Buy-to-let landlords confident for 2008

Buy-to-let mortgages look set to maintain their popularity in 2008 with the news that four out of ten landlords expect to invest further in rental property this year.

A new survey, published by the Association of Residential Letting Agents (ARLA), also revealed that 90 per cent of landlords have no intention of selling their properties for nearly 17 years.

The strength of the sector was further illustrated by the indication that investors are borrowing a smaller percentage of the purchase price of a new property - down to an average of 70 per cent of the price in the last quarter of 2007, compared to 74 per cent over the previous three months.

Commenting on the figures, ARLA head of operations, Ian Potter, said: "This is good news for the whole of the private rented sector and for the housing market, particularly as it comes from surveys carried out well after the credit crunch had begun to bite."

"The rental sector is the lynchpin for all our housing requirements and needs continual investment from private individuals as it still suffers from a lack of investment from the institutions."

Research published last week by lender Paragon claimed that the growth of buy-to-let mortgages will result in them representing 15 per cent of all new mortgages approved this year.

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