'Higher rents on the horizon' for buy to let landlords

21 August 2009

Written by Jeni Browne

Landlords with buy to let mortgages could be set to benefit from higher rental incomes in the near future.

According to the managing director of landlord website Smartlandlord.co.uk, Keshav Thukaram, there will soon be an increase in the ratio of prospective tenants to available rental properties.

Consequently, rents can be expected to "rise considerably", the industry expert suggested, before warning landlords of the importance of having rent guarantee insurance in place in case their tenants lose their jobs and cannot pay what they owe.

Reflecting on the buy to let industry as a whole, Mr Thukaram said: "The private rented sector has a major role to play in pulling the housing market out of the current slump and in housing people in years to come."

Meanwhile, the Council of Mortgage Lenders revealed this month that there were 21,600 new buy to let mortgages advanced in the second quarter of this year.

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