It has been reported that the Buy to Let market remains strong despite downbeat statements from Bradford & Bingley yesterday.
Well established landlords are continuing to benefit from strong and rising rental demand. It has been reported that rental income has gone up by 6% this year.
Amateur landlords may be struggling with their mortgage payments but this is a small proportion of the market. These landlords will also be benefiting from increased rents. We would therefore expect arrears to fall overtime.
With the number of first time buyers either being unable to afford a property or unable to arrange a mortgage the rental market will be in demand. Similarly those people who have sold their property are choosing to rent instead of immediately buying again. This is all good news for landlords.
Also with an increase in repossessions and auction activity in future months, as those with poor credit ratings struggle with their mortgage payments, experienced buy to let landlords should be able to pick up property at discounted prices.
If you have any questions on this article please feel free to contact Solution Mortgages on 0845 123 1260.