Recession to affect buy to let investors
A recent survey has shown that many people believe that the ongoing recession in the UK is going to have an adverse effect on buy to let investors, with many expected to make significant losses on their property investments.
The results of the recent research indicated that almost one third of Brits thought that the buy to let bubble would burst as a result of the recession and the current financial climate, with 28 percent of respondents expecting buy to let investor to take a significant financial hit.
A further 25 percent of those responding to the survey thought that buy to let investors were more likely to break even rather than make a loss, which means that they expect that they will not make losses but also that they will not make any profit from their investments in the current climate.
Lending levels in the buy to let sector have continued to decline, with many investors struggling to get the finance that they need.
One industry official involved in the research stated: “The years of the booming property market made investing in bricks and mortar very attractive. But unfortunately this boom couldn’t continue forever and those invested in the buy-to-let property market may now be facing losses due to the current economic climate. Furthermore, the number of buy-to-let mortgages on offer has greatly reduced, meaning those lenders remaining in the buy-to-let space have tightened their lending criteria making funding even harder to find for potential landlords.”
He added that any buy to let investor that was struggling to keep on top of their buy to let mortgage repayments should contact an industry specialist for advice and assistance, stating: “A whole of market mortgage adviser can also talk you through the opportunities and potential pitfalls of the buy-to-let market and whether this is appropriate for you.”
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