Many buy-to-let landlords 'lacked market knowledge'

Posted: 05 Aug 2009 11:42:30 GMT

There were a high number of landlords who made property investments during the boom times who did not have much knowledge of the market, it has been suggested.

According to Tom Entwistle, editor of online community LandlordZONE, this is one of the reasons a number of landlords have experienced rental arrears in recent times.

Indeed, the research agency BDRC reported this week that 30 per cent of private landlords experienced rental arrears in the second quarter of this year - a jump of 18 per cent in the last 15 months.

Mr Entwistle said that this figure was "not really surprising given the severity of this recession and the fact that many new buy-to-letters entered the business largely on borrowed funds".

He added that some property professionals are now beginning to realise that there is "a lot more to letting than an armchair investment".



© Houseladder Ltd