'Future is bright' for landlords

Posted: 01 Sep 2009 09:57:14 GMT

For British landlords who are involved in property investment over a long-term period, the future appears to be bright.

At least that is the view of the managing director of landlord services website LettingZone, Mark Garner, who has claimed that most landlords who have been in the industry for years will have been reaping the benefits of low Bank of England interest rates.

He suggested that those who are on tracker mortgages will be witnessing a healthy cash flow at the moment.

"[At] some point in the future, interest rates will go up so landlords need to take measures to protect themselves ... from that, but rates will probably stay low for another year yet, so you probably haven't got to worry about things for another year," he explained.

However, Mr Garner added that news of rising unemployment means that rental arrears are an area of concern for the industry.

This warning comes despite LSL Property Services reporting recently that rents in England and Wales rose at their fastest pace for a year in July 2009.



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