Everybody is certainly feeling the squeeze out there in the market at the moment and landlords are not immune.
In some grim news from the fund manager Managing Partners Limited (MPL) it seems there are a couple of new statistics of interest to us, and neither of them are very up lifting. In the last 18 months repossessions per day in the buy to let sector have doubled.
Coupled with the news that in the last year buy to let repossessions are up by 302 percent it is tempting to feel a little despondent. MPL estimate that around five properties belonging to landlords were repossessed a day in January.
Jeremy Leach, the managing director of MPL was hardly encouraging either when he stated
“The number of properties belonging to landlords that are re possessed is only going to rise. Mortgage rates have been increasing and deals have been hard to come by. That coupled with falling property prices has meant that more landlords have been finding it difficult to make their payments.”
My advice to you is to try and make sure your portfolio is generating a positive cashflow in these difficult economic times. It is doable even if you have to make some tough choices and decisions. Making the correct decisions for the situation is what it is all about.
As harsh as it may sound, if you are in the lucky position of still having a thriving portfolio or a bit of capital then the forced sales may provide you with some bargains!
Please see our Property Insider Deals website if you want to continue growing your property portfolio in the current market.
