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    For the past 3 years some commentators have been predicting the imminent collapse of the Buy to let sector. House prices are rising faster than both average earnings and now rents. The economic fundamentals behind the strength of the sector are starting to decline. However despite concerns there are some reasons to be optimistic

    Strengths of Buy to Let Sector.

    Mortgage defaults are lower in the But to Let sector than other areas of the Housing market. The proportion of buy to let mortgages 3 months in arrears is only 0.59% lower than 2006 and lower than the average for the UK housing Market 0.89%

    Continued shortage of housing is pushing up prices of renting. Not by as much as house prices, but the stron

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    h average earnings and now rents. The economic fundamentals behind the strength of the sector are starting to decline. However despite concerns there are some reasons to be optimistic

    Strengths of Buy to Let Sector.

    Mortgage defaults are lower in the But to Let sector than other areas of the Housing market. The proportion of buy to let mortgages 3 months in arrears is only 0.59% lower than 2006 and lower than the average for the UK housing Market 0.89%

    Continued shortage of housing is pushing up prices of renting. Not by as much as house prices, but the stro

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    re are some reasons to be optimistic

    Strengths of Buy to Let Sector.

    Mortgage defaults are lower in the But to Let sector than other areas of the Housing market. The proportion of buy to let mortgages 3 months in arrears is only 0.59% lower than 2006 and lower than the average for the UK housing Market 0.89%

    Continued shortage of housing is pushing up prices of renting. Not by as much as house prices, but the stro

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    her areas of the Housing market. The proportion of buy to let mortgages 3 months in arrears is only 0.59% lower than 2006 and lower than the average for the UK housing Market 0.89%

    Continued shortage of housing is pushing up prices of renting. Not by as much as house prices, but the stro

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    e for the UK housing Market 0.89%

    Continued shortage of housing is pushing up prices of renting. Not by as much as house prices, but the strong demand for the rented sector means that the amount of time when the house is not occupied is much less.

    Foreign workers continue to move into the UK from the EU. This is another factor strengthening the renting sector of the housing market.

    Relatively low real interest rates (real interest rates = nominal interest rates – inflation. It is a more accurate guide to the real cost of borrowing). Despite 3 rises in interest rates in the past 6 months real interest rates are still quite low, especially if the old RPI measure is used for measuring inflation.

    Weakness

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