SALES NEWS: Key indicator shows that buy to let sector is in rude health
Mortgage arrears owed by buy to let landlords are expected to fall to their lowest-ever recorded level by the end of this year.
Although not widely known outside of the industry, landlords’ arrears are seen as a key indicator of the strength of the market.
Keystone Mortgages, a specialist buy to let lender, monitors the lettings sector in a regular ‘health check’ by assessing lending figures from a large range of banks and building societies. It says the 9,300 landlords in arrears at the start of 2016 should fall by almost a third by year-end.
There are around 1.3 million buy to let landlords across the UK, of which 60 per cent – that’s about 750,000 – have mortgages. Therefore the predicted 6,500 in arrears by the end of 2016 represents an extremely small proportion.
“We’ve seen no let-up in demand for buy to let mortgages and we don’t expect to see any change in the downward trend in buy to let arrears as a result” says Keystone managing director David Whittaker, one of the leading spokesmen on Britain’s lettings sector.