Unemployment increase 'could cause buy to let problems'
Buy to let problems could emerge as people lose their jobs, it has been claimed.
Further rises in unemployment could cause problems for landlords if tenants fall behind on their rental payments.According to Look4aProperty.com, people letting homes could have difficulty keeping up with repayments on their buy to let mortgages if this happens.
Chief executive Aaron Turner said: "The risk at the moment is that if employment deteriorates further then the problem you have is with all those landlords who are paying their mortgages with the tenants' money."
This could create wider economic problems, since the buy to let market is a "considerable" one, he added.
According to figures from the Office for National Statistics, unemployment stood at 5.7 per cent during the third quarter of this year - an increase of 0.5 per cent on the previous quarter.
Meanwhile, the Council of Mortgage Lenders has predicted that around 45,000 properties will be repossessed in 2008, representing 0.38 per cent of all mortgages in the UK.
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