Buy-to-let 'a good place to be'

03-Jun-2008

Buy-to-let mortgages will not become a casualty of current difficulties in the UK's housing market, property seekers have been reassured.

Chatting to Channel 4 News after Bradford and Bingley blamed capital-raising difficulties on people defaulting on buy-to-let mortgage payments, Accenture's Julian Skan said the buy-to-let market is unlikely to contract as much as some observers have predicted.

The consultant pointed out that in 1991 - the last comparable recession period - the buy-to-let market was much smaller.

Mr Skan continued: "The whole concept of buy-to-let is much more embedded in the UK and of course, if mortgage rates are higher, then one of the effects is that more people will want to rent.

"So there is reason to believe that buy-to-let is quite a good place to be."

Bradford and Bingley, the UK's biggest buy-to-let lender, revealed this week that it experienced plunging profits during the first four months of this year.

The revelation led a number of observers to speculate about a negative future for the UK's buy-to-let sector in light of overall housing market difficulties.

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Cheap buy-to-let property promising for mortgage seekers Buy-to-let market 'should remain strong'

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