Buy-to-let investors still confident says RICS

According to latest findings by RICS, only 12% of buy-to-let property owners whose contracts came up for renewal in April opted to sell the house rather than re-let it.

This is only a fraction up compared with the 11% figure recorded in October last year - seven months before the interest rate rise.

Other figures even indicate the interest in the buy-to-let market is increasing.

RICS says around 43% of properties that came onto the market in April this year were owned by landlords who where new to the buy-to-let business, compared with 41% in Ocotber last year.

North-east, in particular, has proven to be a pooular spot for buy-to-let investors, the survey suggests.

RICS believes this scenario is likely to continue as stronger tenant demand is predicted to keep pushing rents slightly upwards.

Last month, some 23% more surveyors reported a rise in lettings activity than reported a fall, up from 20% in January.

Jeremy Leaf, RICS residential lettings spokesman, says: "Buy-to-let remains as popular as ever, despite interest rate rises and the constant debate about an imminent threat of a burst in the housing market bubble.

"There is also nothing in our monthly housing survey to suggest that owner-occupiers are selling their properties in order to rent in the short-term in the hope that prices drop before they purchase another property," he adds.

IFAonline

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