Questions are being asked whether the buy-to-let boom is coming to an end. Many investors see this as an easy way to increase returns on capital invested, many professional landlords will tell you this is just not the case. A new survey from the Annual Landlord suggests that one in five landlords in the next 2 years will go out of business. The report suggests experienced longer term landlords are achieving good sound returns year on year. Inexperienced landlords are seeing debts rise monthly due to high repair bills and rent arrears which in fact are reducing nationwide. The survey suggests almost 50% of landlords at one time or another have experienced rent arrears but this figure is reducing annually. Landlords over the last year have been hit very hard with new legislation and tax changes which inevitably will hit annual profits. We spoke to one of our experienced landlords who said “these findings are correct but I am finding the market still working in my favour”. “Good quality properties are very easy to let if they are in the right area and can demand good rents”. “As for rent arrears perhaps I have been lucky, to date rent collections have been consistent and very stable”. Good mortgage choice It would seem the market is currently slowing but we are still seeing plenty of applications coming through every week. If you are considering this area of investment it would be a very wise decision to seek professional advice as to what mortgage best suits your needs. Lenders are still increasing their choices and we don’t see this slowing down currently at all. Need help Please do call one of our fully qualified advisers who will be able to guide you through the application process.
