Arla: Buy-to-let has boosted rental sector

11 October 2007
The concept of buy-to-let helped to revive the UK's private rented sector, according to one expert.

Malcolm Harrison, a spokesperson for the Association of Residential Letting Agents (Arla), said that during the 80s the country's rental sector "nearly died" before improving in the 90s.

"Buy-to-let gave it a boost primarily by bringing better standards into the rental sector," Mr Harrison commented.

Such investors currently make up approximately one-third of the whole private rented sector, he said, suggesting that buy-to-let mortgages had helped to "refinance" a significant part of the overall private rented sector.

A survey conducted by Arla revealed that more than half of all buy-to-let investors said they are expecting to increase their portfolios over the next year, with 90 per cent stating they would not sell their properties if house prices fall.

However, proposed changes to the tax system affecting residential property investment could prompt many to put their houses on the market.

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