Strong rental demand will help ensure that the buy-to-let market continues to perform well during 2008, it has been claimed.
According to specialist brokers The Business Mortgage Company, there are rising levels of tenant demand as people wait to see what happens to the housing market.
Moreover, rising rents mean landlords have some "great opportunities" to expand their portfolios, said a spokeswoman for the firm.
"The current slowdown in the housing market may enable landlords to drive genuine discounts off the true market value of properties and snap up some bargains," she remarked.
But The Business Mortgage Company is warning that lenders are being more selective about their clients because of a lack of liquidity in the market.
"In order to stem the flow of business and to reduce their exposure to risk, lenders have made some significant criteria changes," she added.
In fact, the Financial Times recently reported that all 90 per cent loan-to-value buy-to-let mortgages have vanished from the market.
This means that prospective landlords must come up with a deposit of 15 per cent or more.
See Also: Property News (6705)
Date Published: 29 April 2008
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