Mortgage lending slows – good news for landlords?

This could be good news for buy-to-let investors and professional landlords. Many have been concerned that an easing of the property market, combined with government measures to help first-time buyers, would result in reduced demand for rental properties. But, if it remains difficult to get a mortgage, many prospective buyers will be forced to remain in rented accommodation.

The fall is likely to be partly attributable to the rapidly rising property prices seen towards the end of 2009. Depressed supply, combined with a new rush of buyers, saw prices pushed up. But these increases may level off as supply catches up with demand again.

Predicted peaks in unemployment next year are also likely to impact not just on property prices, but on individuals’ ability to secure a mortgage

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One thought on “Mortgage lending slows – good news for landlords?

  1. Helen Clover

    What may be good news for landlords has to be bad news for wannabe buyers. It doesn’t really matter how the economy is performing and how this reflects on how much money the institutions will lend; there will always be those who see the opportunity to profit; whether this is by employing innovative methods from other countries (for example Taxation Increment Financing (TIF) or exploiting shortcomings in the current system. Transaction opportunities; in this case the preference to rent or buy are weighted depending on many factors; the economy and availability of funding are just two of the factors, how investors make their decision ultimately is much more complex and includes risk preference, life style choice, family influence, education to name just a few. Buying property and taking on the responsibility of maintenance and mortgage repayments is a huge step for many, and of course buying property to let and becoming a landlord is not the bed of roses that many believe it to be either.

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