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Buy-to-let market `to benefit from slowing house prices`
21 September 2007
A slowing of the housing market may revive the buy-to-let sector, an industry expert has claimed.
As housing prices slow due to rising interest rates and uncertain financial markets, those who have taken out buy-to-let mortgages may benefit financially, according to a spokesperson for the Association of Residential Lettings Agents (ARLA).
Malcolm Harrison said that the demand within the rental sector is already high, as many first-time buyers are priced out of the market. However, he added that this is set to increase if housing prices level out as buy-to-let mortgages have a "much better" credit record than normal mortgages.
Mr Harrison continued: "Most buy-to-let investors, new or experienced, actually go to mortgage lenders with a well-thought out proposition and that proposition generally includes quite a high deposit and conservative expectations of the rental value."
ARLA is the professional and regulatory body for letting agents in the UK.
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