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Buy-to-let demand not put off by house price rises

Consumer demand for buy-to-let mortgages is not decreasing despite the rise in property prices throughout the UK, according to a survey from the Association of Residential Letting Agents.

The Arla survey says that, although there is a shortage of properties to let in London and the Home Counties, most of the country has a balance between supply and demand.

Prices for buy-to-let properties have increased by 13 per cent over the last year, say respondents.

Throughout the coun-try, rent levels have increased by 8 per cent, with levels marginally higher in London.

The Council of Mortgage Lenders says buy-to-let mortgages are more likely to be sold through independent advisers because they are an investment opportunity and and advice is generally needed.

Despite this, there is an increasing amount of literature made available directly to consumers to aid them in making up their own minds.

There are shortages for mid-range houses with one, two or three bedrooms.

Arla chairman Frances Burkinshaw says: “These results confirm that, despite soaraway house prices during the early part of the year in some areas, demand for rented property is growing steadily and this is recognised by the private investor in the buy-to-let market.”

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