Low Portfolio Gearing
Paragon Mortgages carried out a survey on two hundred landlords and found they are in a position to cope with the credit crisis.
Gearing, it was found, is at its lowest level since May 2005, which suggests a strong credit quality of buy to let investors. Borrowing across their portfolios was 36% this is down 2% from the last quarter of 2007.
Those with low gearing are in a good position to expand their portfolios to take advantage of the high demand for rental properties plus the fact that tenants are staying longer in rented accommodation.
It is expected that the buy to let market will continue to produce higher yields and arrears will also continue to be at a lower level than the rest of the market as a whole.
|
