Buy-to-let landlords

Investors guarantee the growth of the private rented sector

Amidst the findings of a recent study, buy-to-let investors expect to hold on to their properties for up to twenty years in spite of falling house prices, according to the Association of Residential Letting Agents (ARLA).

The latest quarterly ARLA Review and Index, published on January 12, 2009, reveals that the proportion of investment landlords who do not expect to sell during the next year has increased from 77 per cent to 88 per cent.

The results were produced from data supplied by 488 lettings offices and from 328 investor landlords in November last year and show that on average landlords keep their investment properties for 16.3 years. More than one in five investors expects to maintain their investments for over 20 years.

Ian Potter, head of operations for ARLA, says, “Again and again these independent surveys show that buy-to-let landlords are helping to guarantee the growth of the private rented sector.

“They are providing housing solutions for those hit by the current recession and will continue to do so in the future.”

did you know?

Claiming deductions against tax

Deductions against tax on rents received may be claimed for the costs of maintenance, such as insurance, cleaning, gardening, agent's commission and other reasonable management expenses (but not improvements).

The initial cost of furniture fittings and fixtures is not allowable, but the actual cost of subsequent replacement may be claimed, or, alternatively, a wear and tear allowance of 10 per cent of the rents received may be deductible.