There was both good and bad news for Buy-to-let investors in this weekend’s financial press, with the Telegraph reporting that landlords are currently benefiting from record rents, high demand, low interest rates and an increasing number of lenders to choose from. Experts did suggest however that the biggest challenge is still securing finance in the first place due to the requirement for large deposits. The Sunday Times claimed that changes to the system of housing benefit could also have a dramatic effect on the private rental sector, where 1.4 million tenants currently receive state help. Brokers felt that the market could see a drop in demand for one-bedroom flats as claimants no longer qualify for support. The Observer continued with a look at benefits, revealing that the homeless charity Shelter has predicted a sharp rise in repossessions next year as thousands struggle to cope following a 40% cut in the rate at which Support for Mortgage Interest is calculated. At the other end of the scale, the Financial Times looked at wealthy homeowners who are increasingly relying on bridging loans as they struggle to sell their existing property in the current market. First Time Buyers also got a mention, with the Telegraph discussing new 90% mortgages through Skipton Building Society, and the Sunday Times covering the announcement by RBS that they will no longer be offering interest-only mortgages to those buying a property for the first time.
What the papers say- 4th and 5th December 2010