Buy-to-let market more robust

Nia Williams

February 12, 2010

Commenting on the publication of the latest buy-to-let arrears data from the Council of Mortgage Lenders (CML), showing that fewer landlords are experiencing financial difficulty, Simon Gordon, head of communications, NLA, said: “The latest figures from the Council of Mortgage Lenders demonstrate the resilience of the market in what have been difficult times for landlords. Fewer landlords are struggling to meet mortgage payments, with arrears down 37% year on year. The number of properties taken into possession in the fourth quarter has also fallen by 25%, as many landlords benefit from reduced interest rates.

“It is encouraging to see the total number of buy-to-let repossessions remain a small percentage of the market, at 0.46% of the total book, similar to the annual rate for the residential mortgage market.

“Clearly, the figures suggest the buy-to-let market is far more robust than originally feared. The government should take note of this when considering whether regulation is really necessary. Rather than wasting effort on further legislation they should be encouraging lenders to get credit flowing again.”

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