13 Jul 2009
Speedy repossession proceedings against buy-to-let property owners have been criticised by the National Landlords Association (NLA).
David Salusbury, Chairman of the NLA, the professional body which represents the interests of private residential landlords, claims landlords should be given the opportunity to manage their financial problems.
Mr Salusbury said 44 per cent of landlords experienced some form of rental arrears in the six months to March 2009 and admitted that the recession has claimed a growing but small number of buy-to-let investors.
However, the rental sector is making an "ever-more important contribution to the overall housing mix", he argued.
"The UK needs a strong rental sector and this article makes a clear case for offering landlords sufficient space to try and deal with their financial problems," Mr Salusbury said.
"By moving quickly to repossess properties owned by buy-to-let borrowers, the problems of pressure on social housing and increased homelessness will not go away." he added.
According to data for the second quarter of 2009 published by the Association of Residential Lettings Agents, some 50 per cent of the body's membership agreed that dramatic interest rate cuts from the Bank of England last year are "tempting investor landlords back into the market because of the minimal interest to saving rates".