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Landlords have serious doubts about the sheer economics behind buy-to-let mortgages amid evidence of missed rents and a decline in profitability. Only two in five investors surveyed by BDRC were “optimistic” about the private rental sector, the gloomiest outlook since the quarterly report began in October 2006. The finding comes after Bradford & Bingley said the number of landlords who were at least three months behind on their mortgage dues had leapt by more than 52%. Economists say the basic economics of buy-to-let are at fault; lending is scarce, mortgage rates have increased, rental yields are lower and house prices are falling. But while the buy-to-let market is likely to continue cooling, only a few landlords see problems for Britain’s biggest buy-to-let lender as a reason to exit the market. Some 44 per cent said property would be their main source of income in the future, in recognition that they will always be a demand, if not a need, for rented property. Yet 17 per cent had missed a mortgage payment in the past quarter because tenants had not paid up on time, says the BDRC findings, seen by the Daily Telegraph. The researchers added that the profitability of landlords’ investments is now at its lowest level and the levels of missed rent at their highest. Jun 10, 2008 Email this article Printer friendly page Previous Page
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