The Association of Residential Letting Agents (ARLA) recently reported that landlords are taking advantage of the downturn in property prices to increase the size of their portfolios.

Low interest rates and steady rental yields by comparison with bank account returns are apparently making buy-to-let an attractive option for investors once more, although difficulties obtaining finance keeps overall numbers on the low side.

According to ARLA, the average number of properties held per landlord rose from 6.3 to 7 in less than a year, marking a reversal of a reduction trend, which kicked in at the beginning of 2009.

The Royal Institution of Chartered Surveyors’ most recent survey supported the findings, reporting a net balance of 2% more surveyors reporting a rise in buy-to-let inquiries.

Steven Wright, Fenn Wright partner and head of Colchester’s residential lettings department, remarked: “The lettings market remains strong as many prospective purchasers are still waiting in rented properties in anticipation of a possible double dip in the market, which some pundits have predicted.

“We are able to let most properties as soon as they come onto our books so, unsurprisingly, landlords are being tempted back into multiple ownership as returns are a lot greater than interest offered on deposited funds.

“We have noticed a significant rise in the number of landlords with several properties in their portfolios.”