Landlords 'can pay off mortgages easier' due to reduced arrears

Posted: 17 May 2010 11:35:55 GMT

Landlords of buy-to-let properties could pay off mortgages quicker because of lower interest rates, according to one specialist.

Private rental expert Malcolm Harrison believes the reduction in arrears for these properties will benefit owners and tenants.

He said: "Landlords don't have as many outgoings so they are in a better position. The only way to satisfy the market is to attract more landlords."

According to the Council of Mortgage Lenders, the number of loans that had arrears of more than 1.5 per cent of the mortgage balance had gone from 28,800 in 2009 to less than 19,500 at the end of March 2010.

Figures also show that at the start of 2010 the buy-to-let market improved despite an increase in house purchase during last year's stamp duty holiday.

Mr Harrison added that although experts had predicted private rental would account for 15 per cent of the housing market a few years ago, it is now hoped to grow to 20 per cent.


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