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Real estate investment in the UK is looking up and Buy-to-let investors, in particular, are optimistic about buying in England. Because of the new states who joined the EU there is a bigger interest in property rentals.
Investors in buy-to-let are heading into 2007 in an optimistic frame of mind, the Association of Residential Letting Agents' review and index for the last quarter of 2007 reports.Six out of ten investment landlords expect to acquire more property in the year ahead and even if property prices were to fall, only 2.1% would sell.
Instead, buy-to-let is understood as a long term investment with a quarter of all investors expecting to hold their properties for more than 20 years.
On the other side of the coin, tenants are staying for longer than ever. Regardless of the initial term of the tenancy - often six months - tenants are staying for an average of over 17 months. This is a month longer than a year ago. Adrian Turner, chief executive of ARLA, said, "It remains the case that buy-to-let investors are proving to be good landlords who cater for their market and provide the accommodation that tenants are looking for. This allows the private rented sector to offer real choice in housing."
The impact of immigration from the new member states has been noted by landlords and real estate investment experts but it is clear from their responses that most landlords have yet to try obtaining references from the home countries of these prospective tenants. This is not reflected by ARLA member letting agents surveyed who report that they are experiencing severe difficulties with references from these new EU member states.
Adrian Turner said, "The lettings industry and buy-to-let investors are both starting the new year in an optimistic frame of mind. Private individuals have taken over as the main drivers of the sector and it is clear that they are here to stay, and for the long term."
"This new breed of landlord understands that real eatate investment can, and must, take account of the ups and downs of the sales and the rental cycles and they are not spooked by scare headlines about housing."
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