Property investors are taking advantage of record low interest rates and falling house prices to increase the number of properties in their portfolios, research has shown.
According to figures released by The Association of Letting Agents (ARLA), around 16% of letting agents reported that buy-to-let landlords had increased the number of properties bought in the second quarter of the year. This was up from 8% during January to March.
Half of the letting agents questioned said that they believed landlords were returning to bricks and mortar because of the negligible returns available on savings accounts.
The drop in house price has made properties cheaper to buy, which in turn boosts their rental yields. Additionally, low interest rates help to reduce mortgage repayments.
The annual rent available to a landlord is now the equivalent of 5% of a flat's value, up from 4.9% in the first quarter.
Ian Potter, operations manager of ARLA, said: "Each quarter we glimpse a bit more activity as the bargains get snapped up and confidence is restored in buy-to-let as a viable long-term investment vehicle, particularly if the returns are rising too."
