Investment Property Loans In Good Health, NLA Claims

Fri, 03 Oct 2008

Claims that buy to let investment property loans are dead in the water due to current economic conditions have been strongly refuted by the National Landlords Association (NLA).

Earlier this week the collapse and subsequent nationalisation of Bradford and Bingley, which specialised in buy to let loans for landlords, prompted speculation that the practice of non-professional landlords taking on loans to rent out homes was no longer practical.

However, the NLA has dismissed claims that buy to let as a concept "has come off the rails" and that the nation’s landlords are facing a crisis as "simply not true".

The association said some investors would remain untouched by the problem as only 25 to 30 per cent use buy to let mortgages to finance their property purchases.

The organisation also claimed that landlords tend to take a long-term approach to their investments and rental demand is unlikely to reduce dramatically during an economic downturn.

Simon Gordon, head of communications at the NLA, commented: "For the cautious and mature investor who has bought the right property in the right location, they will be seeing an increase in rents and can expect demand to keep climbing."

"This kind of market is not for the feint-hearted and the landlords who may be struggling may well be the more recent entrants with more highly geared portfolios," he warned.

The NLA added that the sector is also expected to be boosted by the growing student and immigrant population.
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