ARLA hits out at Buy to Let abuses; ADVERTISEMENT FEATURE: RENTAL NEWS.
The ARLA panel of lenders, Birmingham Midshires, GMAC Residential Funding, NatWest Mortgage Services, Paragon Mortgages and The Mortgage Business, represent some 40 per cent of all Buy to Let mortgage lending. ARLA represents 1,500 lettings and residential management offices.
Robert Jordan, president of ARLA said that true Buy to Let is an example of private enterprise fulfilling a social need for choice in housing while also providing a fair return for the landlord.
"He said: "It is about fair returns and quality accommodation, not get rich quick schemes.
"True Buy to Let has provided a choice and quality of accommodation that is better than ever before, a fact recognised by the Office of the Deputy Prime Minister.
"With the aid of Buy to Let, the Private Rented Sector provides flexible housing for a mobile workforce, accommodation for the ever expanding number of students in higher education and a partnership with registered social landlords. All of this is about mature investors supporting the sector for the long term."
Although repeated surveys allow the ARLA Panel to be confident that most investors in residential property invest for the long term, using long-term tenancies, they are seeking to remind the public that many areas of property dealing are being improperly linked to Buy to Let and are abuses of the brand.
These include speculative buying off plan, buying in foreign markets and in holiday homes in the UK and abroad.
Robert Jordan added: "Super house inflation has brought about a secondary market that purports to be Buy to Let and probably uses mortgages from some lenders to fund these activities. These include off-plan buying where the purchaser is speculating on the increase in house prices.
"Sometimes these propositions include a guaranteed rent but the public should be aware that these guarantees are no more than a delayed discount and no real guarantee of the rent that can be achieved, or that the property can be let at all."
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|Publication:||Coventry Evening Telegraph (England)|
|Date:||Oct 23, 2004|
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