We use cookies to make your experience of our website better. Please read our cookies policy to find out more. If you continue to use our site, we will assume that you consent to our use of cookies.
Cunninghame Properties - Property Management & Residential Letting Agents On Facebook Cunninghame Properties - Property Management & Residential Letting Agents On Twitter

01294 461911

 

Housing Bubble Fear Over Buy-To-Let

Tuesday, 29th September, 2015

Britain's buy-to-let landlords owe more than 200 billion on mortgages - equivalent to the size of Hong Kong's economy.

The figures revealed yesterday about the scale of the debt fuelled concerns that the buy-to-let market could be badly hit by expected interest rate rises and the impact of Government interference. 

The Council of Mortgage Lenders (CML) published the figure as it claimed a combination of proposed tax and rule changes could create "uncertainty" in the market and urged ministers to consider the risks. Brokers said the boom in buy-to-let mortgages had caused "mirco bubbles" in the housing market as landlords swarmed on the profitable areas, pushing up prices. The CML data showed the amount outstanding on Britain's buy-to-let mortgages has grown by 44 billion in the past five years.

The CML attributed the rise to increasing demand for rented homes. Experts also believe rock-bottom rates for savers and new pension freedoms, which allow people to take their own pension pot as a lump sum, mean more older people - so-called "granlords" - have invested in property. 




SEARCH

Our Accreditations
True