Landlords 'unscathed' by falling house prices

While prospective homeowners are growing increasingly nervous about the property downturn, buy-to-let investors remain relatively cocooned from the difficulties.

That's the opinion of the Association of Residential Letting Agents (Arla), which has said that landlords take a markedly different approach to the market than average owner occupiers.

The group carried out research which showed that nine out of ten landlords say they have no intention of offloading their properties if prices fall further - with 46 per cent even saying they want to expand their portfolios in 2008.

Analysts say that reflects long-term optimism in the buy-to-let market, with investors buoyed by the ongoing housing stock shortage and London's status as one of the most sought-after property destinations in the world.

According to the research, the average landlord has seven properties in their portfolio and anticipates holding onto them for another 17 years.

Unlike first-time buyers they also have very low gearings, borrowing on average just 57 per cent of a property's value which leaves them less exposed to tightened criteria within the mortgage market.

News posted on 21st April, 2008