Landlords 'feeling effects of property market downturn'
News Category: Industry News
Published: 22-Jul-2009
This article was brought to you by Rentman the premium property management system.
Falling property prices are having a negative effect on the finances of many private landlords with higher-valued property portfolios, according to the Residential Landlords Association (RLA).
Recent research from Sainsbury's Finance revealed a £118.4 billion drop in the value of privately leased property in the UK between the first quarter of 2008 and the same period in 2009, causing problems for many landlords and letting agents.
RLA chairman Alan Ward said: "The effect of the drop in values has hit highly-geared landlords especially badly. Some lenders have demanded cash or additional equity from other property to bring the loan-to-value ratios back in line."
However, Mr Ward added tenant demand remains high due to the continued value of privately rented accommodation to the younger mobile workforce.
He also cautioned against attempting to cut costs on basics such as insurance, as doing so could see landlords failing to meet the requirements of their mortgage lenders.
Find out more about letting agent software
