Buy-to-let will remain tough in 2010
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Rental arrears and uncertainty over interest rates are set to plague buy-to-let investors well into next year, warns tenant eviction service Landlord Assist.
The company says that by the end of this year, approximately 150,000 tenant evictions will have gone before the courts, and Lanlord Assit predicts next year landlords will not fare much better as the rental market attempts to stabilise.
Landlord Assist says that rental arrears will continue to be the main problem facing landlords next year, in line with the expected rise in unemployment.
Uncertainty over interest rates will also be brought to bear on property investors next year, the firm says, which will then have a negative impact on mortgage repayments and other financial commitments.
Graham Kinnear, managing director of Landlord Assist, says: “While more consumers have turned to rented accomodation in 2009, a rise in unemployment has meant that more tenants have struggled to meet their monthly commitments.
“This has had a knock-on effect on some landlords, who have already seen the value of their assets decrease.
“Landlords are less equipped to sustain non paying tenants than they were a year ago and need to take precautionary measures to minimise the risk of being exposed to rent arrears.”
But the company says that despite the predicted rise in arrears landlords can take heart from a potential increase in rental yields in 2010, driven by a drop in rental stock.
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Readers' comments (2)
Greg Allen | 27 Oct 2009 11:44 pm
I certainly won't be buying anymore properties, my 5 properties have turned into a nightmare and I can't see an exit strategy. I have 7 properties, of them 3 have tenants well behind on there rent, 2 are let at rents below my expectations and 1 I cant even get a tenant! I only have a single property that's making me money and that's not including all the hassle!
Help!
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Dislexic Landlord | 8 Feb 2010 8:30 am
Dear Greg
I dont know what your doing wrong but there is some thing wrong with your vetting or the type of property your trying to let
I own 75 Properties which have been bought over a 25 year period and I like to think i Know what im doing
You must see past the problems you have and look forward
BTL is a long term project keep at it stick by your guns and you will win through
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