Buy-to-let remains a bastion of strength

If buy-to-let is a castle, being assailed in mediaeval-style by a huge army, firing flaming arrows (or should that be negative headlines?) and attempting to batter down the door with the "credit cruncher" siege engine, then it appears to be a fortress that is withstanding the attack very well. Indeed, the latest survey suggests many within those thick walls will soon be riding out to make some more conquests.

This, it seems, is the picture emerging from the latest survey from the Association of Residential Lettings Agents (Arla). In its poll of landlords, it tested the notion that with property prices having fallen recently, investors would be leaving the market and selling up in droves.

Not so. The Arla survey found instead that nine out of ten landlords did not plan to sell any of their portfolio, even if there are more price falls. In contrast, 46 per cent said they actually intend to add to their portfolios in the next 12 months.

As ever, the picture Arla paints is one where landlords tend to be in it for the long run. To return to the castle analogy, investors are willing to withstand being besieged for a while in the knowledge that relief will be on its way in time, while they, having made provisions for the long-term and not simply gambled on a few quick wins, are able to look forwards to a better future.

Those looking to win this battle are therefore heavily equipped, with an average of seven properties each and a commitment to an average length of investment of 17 years. What may be noted is that some of these latest statistics are even better than those of the Arla survey in January. For example, the 46 per cent figure for prospective new investors tops the four out of ten expressing the same intention back then, while in January the average investment time was slightly shorter at 16.7 years.

So it appears that yet again the long-term view appears to be prevailing, not only in terms of its popularity as an approach but in the optimism that it will pay.

Of course, some have noticed the counter-cyclical element of buy-to-let property, in which some advantages have accrued from the housing market downturn such as higher rents due to the increased demand from those who might otherwise be seeking to get on the housing ladder. If that is a benefit of the current situation, it is one that is expected to remain in place after the liquidity crisis has dissipated.

This point was made by Bank of England monetary policy committee member
Charlie Bean in a speech this week. Stating that "It is important to recognise that some of these changes will persist beyond the resolution of the current hiatus in mortgage markets," he said the higher deposits and more cautious lending decisions will remain a feature of the property market as cautious banks apply the recent lessons.

Mr Bean added that the MPC was "walking a tightrope" over rate policy, which may lead to considerable uncertainty over what will happen next. But for those who have committed themselves to a long-term view that can absorb the ups and downs of the economy in the coming months, such an approach should act as a protective moat.

In today's world Property investment is an excellent investment option especially investment in UK

Jim Barnaby is a real estate investment broker and successful property investment adviser delivering research and selected UK and overseas property investment solutions with experience in spanish properties, french property investment, German property, Cyprus holiday homes, Property in Cape Verde, German property investment, cape verde property buy to let property