Landlords could benefit from credit crunch

Buy-to-let property investors may see the biggest benefits from global credit crunch.

That is according to Moneygate, which says that more people are having their mortgage applications rejected in light of the crisis.

It means that an increasing number of potential buyers are turning to rented accommodation instead of purchasing a home - spelling good news for landlords.

"In general the rate of arrears and repossessions for BTL investors is much lower than for residential on account of the income they can generate," said Moneygate's Dennis Reed.

"Also experienced portfolio landlords tend to be older and have greater income as well as an asset-base, which the average residential buyer does not.

"Despite predictions of doom and gloom in the property market, the buy-to-let market looks set to continue bucking the trend with predictions of up to 15 per cent growth over the next year," he added.

Property for Life recently revealed that 76 per cent of landlords believe that now is a good time to buy an investment property.

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