Landlords are losing confidence in the buy-to-let market amid evidence of declining profitability and rising levels of missed rent.
The report, from market researchers BDRC, makes grim Reading for buy-to-let specialists such as Bradford & Bingley. Only two in five landlords are optimistic about the private rental sector, the lowest since the quarterly report began in October 2006. Profitability is at its lowest and levels of missed rent at their highest.
Some 17% of the 500 landlords surveyed said they had missed a mortgage payment in the past quarter because tenants had not paid up. Despite these concerns, landlords intend to stand behind their property investments. Some 44% said property would be their main source of income in the future.