“Robust” growth is expected to remain in the rental sector in 2012, although fewer transactions will take place in the buy-to-let market.

According to the Association of Residential Letting Agents (Arla), 2011 was characterised by landlords reshaping their portfolios.

The number of property investors selling rose from six per cent to eight per cent, while the number buying increased from 23 per cent to 25 per cent.

Arla predicted that this situation will change in the year as these ‘active landlords’ sit tight, but maintained the private rented sector (PRS) will experience growth in 2012.

President Tim Hyatt said: “Rental growth will remain robust across all sectors, albeit at a more sustainable level of around four per cent to five per cent for this year.

“The PRS still represents substantial value for investors looking to enter the market or increase their participation.”

Arla also recently released research showing an increasing number of accidental landlords are entering the market, as people struggle to sell their homes and turn to the PRS as a means of generating income.

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