With the likelihood of a recession becoming even more of a reality and the property industry saying this makes it even more imperative for there to be a cut in interest rates, many of the national media’s financial experts have been looking at the Buy to Let Market.
In the Telegraph, Paula Hawkins gave advice on the steps buy to let landlords can take to avoid losing their properties.
The article reported that although repossessions and the number of mortgages in arrears were on the rise landlords should be encouraged by the fact that only a fraction of these are buy to let mortgages.
But the article went on to warn that experts fear the picture for landlords could worsen dramatically.
On the other side of the coin it was stressed that with the restriction of mortgage finance making it more difficult for prospective first-time buyers to get onto the housing ladder, there should be a growth in rental demand.
But the abundance of stock has created greater choice for tenants and this appears to be backed up by the Association of Residential Letting Agents (ARLA), whose latest survey found that rents have fallen by 7pc for houses and 9pc for flats.
The MSN money expert also offered advice to landlords on its internet site.
It said that according to the National Landlords Association (NLA), property investors can survive the credit crunch by following simple steps to ensure they are able to attract good tenants and keep themselves afloat.
This advice included researching the local rental market to make sure you are not pricing yourself out of the market and doing some forward planning to avoid periods when your property is not rented out.
All the experts agree that if residential landlords and investors are struggling to meet repayments they should talk to their lender before falling too far behind.
David Salusbury, chairman of the NLA, thinks this could be a good time for professional landlords.
He said: “It's now 12 months since the 'credit crunch’ became a part of everyday conversation. Although in leaner times we all need to be a little more prudent, for professional landlords with an eye for a bargain, there could well be rich pickings.
“Rumours of massive increases in rent are probably being overplayed but there is certainly a hike in demand for decent and well-placed rental properties. This should be music to the ears of the portfolio landlord, but don’t get caught out.
“Proper advice for landlords is critical. By following the NLA top tips, landlords could increase their chances of getting the most from their properties at a time when the wider economic outlook is not looking so good.”
