20% more landlords struggling with mortgage payments than a year ago

first_imgHome » News » Housing Market » 20% more landlords struggling with mortgage payments than a year ago previous nextHousing Market20% more landlords struggling with mortgage payments than a year agoFigures just out from UK Finance reveal extent of government’s taxation crackdown on buy-to-let landlords as margins are squeezed.Nigel Lewis9th February 201801,027 Views The number of landlords struggling financially has soared by 20%, figures from UK Finance, the organisation replacing the Council of Mortgage Lenders, reveal.Its latest market report shows that the number of landlords with more serious mortgage arrears is on the increase.Those with arrears of between 7.5% and 10% of their balance increased by a fifth year-on-year, although the buy-to-let ‘crackdown’ being led by the government has yet to drive increased possessions in this market – which have held steady.Buried deep in the UK Finance figures is one less publicised fact – that ten times fewer landlords are in mortgage difficulties than homeowners.This may baffle the many landlords who are facing increased lending criteria following the Prudential Regulation Authority’s recently-introduced stricter buy-to-let lending rules.But although the buy-to-let market is struggling, the lending market for homeowners is looking much brighter, UK Finance says.The number of homeowners with arrears of up to 5% of their mortgage balance has been dropping dramatically over the few years, down from 55,000 mortgage in 2014 to 34,500 mortgage during the final quarter of last year. And year-on-year, this type of mortgage arrears decreased by 10%.Also, those in serious arrears has been shrinking. People with mortgages in arrears by more than 10% of their overall balance reduced by 4% year-on-year.According to Strutt & Parker in its latest residential market report, problems for landlords may be a boon for their sales operations.It says the market is “shifting towards first time buyers” and that in particularly within the prime central London market (PCL), “changes in taxation and other rising costs in the buy-to-let space pushed some landlords out of the market in 2017,” says Kate Eales, its Head of Residential Lettings.But in London its struggling prime market is having one unexpected effect on the lettings market, one that could spread nationwide.“In PCL, former vendors becoming landlords because they cannot secure the premium price they want on the sales market have boosted rental stock,” says Kate.Read more about the crackdown on buy-to-let landlords.Strutt & Parker mortgage arrears landlords UK Finance February 9, 2018Nigel LewisWhat’s your opinion? Cancel replyYou must be logged in to post a comment.Please note: This is a site for professional discussion. Comments will carry your full name and company.This site uses Akismet to reduce spam. Learn how your comment data is processed.Related articles Letting agent fined £11,500 over unlicenced rent-to-rent HMO3rd May 2021 BREAKING: Evictions paperwork must now include ‘breathing space’ scheme details30th April 2021 City dwellers most satisfied with where they live30th April 2021last_img read more