'Many buy to let landlords' questioning their future

09 September 2009

Written by David Whittaker

Financial constraints are leading a number of landlords to consider their future in the buy to let industry, according to an industry expert.

Mark Butterworth, a director at the Residential Landlords Association, said that the fact housing allowances now get paid to the tenant - rather than the landlord - and other legislation costs are certain to have an effect on the number of properties available to rent.

His comments follow the publication of the Royal Institution of Chartered Surveyors' latest research, which showed that the level of new instructions increased at a slower rate between May and July than the previous three-month period.

Apparently, the net balance of surveyors recording a rise rather than a fall in the level of new instructions grew six per cent, compared to a 21 per cent increase between March and May.

"The costs and administration involved in renting properties now, is having an effect on margins to the point where many are wondering whether they have a future in the market," Mr Butterworth explained.

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