Landlords in credit crunch boost

Posted: 07 Nov 2007 10:50:51 GMT


            Property News - Landlords in credit crunch boost

The global credit crunch may have affected many people in a negative way but it seems that buy-to-let property investors may actually benefit from the squeeze.

The global credit crunch may have affected many people in a negative way but it seems that buy-to-let property investors may actually benefit from the squeeze.

It is suggested by Moneygate that there will be more people looking for rented accommodation in light of the troubles as mortgage lenders tighten their criteria.

According to the firm, there will be an increase in potential buyers having mortgage applications rejected and landlords could reap the rewards by renting their properties to these people.

"In general the rate of arrears and repossessions for BTL investors is much lower than for residential on account of the income they can generate," comented Dennis Reed from Moneygate.

"Also experienced portfolio landlords tend to be older and have greater income as well as an asset-base, which the average residential buyer does not.

"Despite predictions of doom and gloom in the property market, the buy-to-let market looks set to continue bucking the trend with predictions of up to 15 per cent growth over the next year," he added.

The Association of Residential Lettings Agents recently revealed that UK landlords are already charging record rents in response to soaring demand for rented accommodation.

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