Landlords feeling the credit crunch

According to a Council of Mortgage Lenders (CML) report, there were 4,000 repossessed buy-to-let properties last year, up from 2,000 in 2007 and should this continue at the same rate as the last quarter of 2008 it is suggested that there will be almost 7,000 buy-to-let properties repossessed in 2009.

With unemployment anticipated to reach three million by 2010 this figure could increase significantly. Graham Kinnear of Landlord Assist, a nationwide tenant eviction and rent collection company said “Many landlords are really feeling the brunt of economic contraction. Tenants have less money to pay the rent and some cannot pay at all. Previously good tenants are losing their jobs and the landlord is then losing their income.”

“The eviction process can take up to five months and accordingly landlords can have sustained significant arrears of rent by the time the tenant leaves which puts incredible pressures on them to meet mortgage payments in the interim.”

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