Landlords able to ride out rate rise says Rics

Posted: 25 Jan 2007 11:10:01 GMT

Many first-time buyers will feel the squeeze of increased borrowing rates in the coming months, but landlords are generally well placed to ride out the costs says a survey

Many first-time buyers will feel the squeeze of increased borrowing rates in the coming months, but landlords are generally well placed to ride out the costs says a survey.

The Royal Institution of Chartered Surveyors (Rics) said that buy-to-let investors tend to be older, with easier access to capital and equity release and more disposable income.

With affordability figures at their lowest point in more than 20 years the rental market also remains healthy, with the number of tenants ensuring that yields are stable.

"Buy-to-let investors will be less at risk from repossessions in the coming months," said Rics economist David Stubbs.

"Older, wiser investors are likely to ride out periods of interest rate rises looking to the benefits of long term capital growth rather than short term rental income."

Of 11,650,000 mortgages in the UK 0.96 per cent, or 111,860, are currently in arrears. Just 5,318 of these were secured against rental property, however.

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