23 Jun

Interest rate cut 'prompts buy-to-let bounce back'

Interest rate cut 'prompts buy-to-let bounce back'

The buy-to-let property market has benefited considerably from the decision by the Bank of England's monetary policy committee (MPC) to keep interest rates low in recent months, according to the Association of Residential Letting Agents (ARLA).

Results from the latest ARLA buy-to-let market survey show that the sector has bounced back in recent months, which coincides with the MPC's reduction in the base rate to 0.5 per cent in March and its decision to keep it at that level each month since.

During the second quarter of 2009, nearly twice as many ARLA members reported that landlords are buying more properties - compared to the previous three-month period.

Ian Potter, operations manager of ARLA, remarked: "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."

He added that the government has started to realise that the private rented sector is an important part of the overall housing market.

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