Wednesday, Mar 07, 2007
ARLA survey of BTLs
PR Newswire: Rents Mark Inflation While Property Prices Soar
The Association of Residential Letting Agents, ARLA, has published the findings of its recent survey. It says that although rental yields have kept pace with inflation, profits have remained relatively static. However, buy to let investors have benefitted significantly from capital growth.
Posted by jellycaster @ 08:45 AM (173 views) Add Comment
3 Comments
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1. uncle chris said...
If you read the actual report from ARLA, you may be forgiven in thinking their figures are a bit suspicious. In particular I note the following -
(1) They say 525 'validly' completed surveys were returned by due date, but any standard statistical analysis should state how many were rejected.
(2) They claim the average yield in Feb 07 is 5.1% - down slightly (0.2%) since May 06.
(3) Check your own area (page 21 of the actual report) but for my region (Wales/Scotland/NI) they claim that the AVERAGE rent for a house is £1,059 per month in Feb 07 up from £792 in Nov 06 - i.e. a 34% increase in 3 months ????? Strangely enough I don't see it. I checked one of my local letting agents this morning and only one property out of 52 was over £1000 and that was a 7 bedroom manor house. Even their average rental for a flat (£711) is well above the mark - the letting agent suggests £350-£400. Maybe they just chose Cardiff and Edinburgh properties.
All goes to show that surveys can be made to say anything you want them to say by judicious selection of the returns. This bares no relation to what I see.
2. inbreda said...
UC - I got as far as "ARLA Survey...." and lost interest. I don't think they've ever tried to report anything non bias, so it's never going to be worth the paper it's written on.
3. C'mon Correction said...
Here in Wales you can rent a 3 bedroom semi (nice size, built in 1930's, not a new age box) in the nicer area of the captial - Cardiff for £650 pcm. Many examples of this too. The same properties sell for around £200-£220k; do the maths renting compared to mortgage and you'd be a mug to buy in the stagnate market here.
Reports like this are nonense.