Recent figures released by LSL Property Services show that buy-to-let mortgage arrears are at their lowest level since 2007. In the first quarter of 2016 there was a 9.7% drop in BTL mortgage arrears compared to the previous quarter. The figure stood at 9,300 cases.
The low level of arrears can be attributed to a number of factors including lower tenant arrears, sustained low interest rates, a reduction in tenant evictions and rising rents. However, there is an underlying uncertainty surrounding the sweep of regulatory changes, particularly the phased withdrawal of tax allowances. Landlords currently sitting just below the high income tax band, potentially those with multiple properties are likely to be hit hardest.
The longer term impact on the BTL market following the recent referendum result remains to be seen, however in the interim landlords are encouraged to ensure that they are fully prepared for the legislated changes and seek qualified financial advice on how to plan.
Article courtesy of LandlordZONE®