In the News
Buy to Let Mortgages - Problems Brewing for Landlords and Tenants?
12th July 2023
Might the steep rise in mortgage interest rates and other costs such as energy bills and property repair prices cause thousands of landlords to have to sell their properties? Selling might accelerate a fall in UK house prices. Passing on higher costs through increased rents will cause deeper financial pain to tenants many of whom are struggling to cover rent and other bills.
- In 2022, 211,000 buy-to-let mortgages were approved.
- This was 13.6% of total UK mortgage lending for the year.
- There are around 2.7 million landlords in the UK, with more than two-thirds over the age of 55.
- The average landlord has eight properties in their portfolio.
This year, many buy-to-let investors have seen big increases in mortgage interest payments plus rises in energy prices and property repair bills.
Rising mortgage rates could cause landlords to sell, putting downward pressure on UK house prices.
Alternatively, they may pass on higher costs to renters – causing pain to tenants.
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