Buy To Let Getting Tougher

A recent report in The Times provides useful information about the Buy-To-Let property market.

With house prices falling faster than they have done for decades, it seems as though Buy To Let landlords may be in for a hard time, especially if they entered the market when property prices peaked. Some investors will undoubtedly weather the storm, whereas others may not be so fortunate.

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The current trend is all the worse because of gloomy economic forecasts and the threat of recession, which many experts believe is now a certainty.

The following is an extract from the article in The Times:

"It has been an uncomfortable fortnight for Britain's army of landlords. House prices are falling faster than at any point in the past 50 years and experienced lenders have been backing out of the market.

Some commentators have been declaring the death of buy-to-let and experts agree that there is little to be gained from entering the market in the current economic climate.

It has not been all bad news. Rental demand is expected to continue to grow as first-time buyers delay the purchase of their first home. There are 1.6 million 20 to 39-year-olds who are renting because they cannot afford to get on the property ladder, according to Hometrack, the property data company. A 20 per cent fall in house prices would still open the market up to only 600,000 young buyers.

Richard Donnell, of Hometrack, says: “Rental demand is fuelled by young people in their twenties and thirties who cannot afford to buy. Even a sharp fall in house prices won't bring that many people into the market, thus fuelling rental demand for the next 18 months at least.”"

Please Click Here to read the complete story TIMESONLINE.

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Buy To Let Gets Tough
Buy To Let Gets Tough