Credit crunch 'takes its toll on landlords'

Posted: 20 Oct 2008 12:17:36 GMT

Before the credit crunch started, buy-to-let investors were able to take advantage of easily attainable mortgages to purchase properties in northern cities.

That is according to property industry research specialist Mouseprice, which explained that these cities were the hardest hit by the financial turmoil because they had witnessed the most inflated price growth.

Selwyn Lim, director of the firm, explained that landlords transferred vast swathes of cash to areas in Middlesbrough, Halifax, Manchester and Newcastle upon Tyne "because of the promise of higher rental yields".

"As these particular areas experience the fastest prices growth over the boom years, they were then most vulnerable when the credit crunch started," he added.

Mouseprice's latest annual street rankings survey indicated that the most affordable property can be found in South Elmsall, Yorkshire, where prices are now as low as just £25,600.

Recently, the Telegraph warned that landlords are facing a mounting crisis as the value of new, purpose-built investment properties has plummeted by 40 per cent since last year.

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