Buy-to-let landlords facing tougher time as rents dip and mortgage costs rise | This is Money

Buy-to-let landlords facing tougher time as rents dip and mortgage costs rise | This is Money

Landlords are facing a tougher time as rents have dipped and the cost of mortgages has risen.
The average monthly rent in England and Wales was £707 in February, down 1.6 per cent from its peak of £719 in October 2011, according to LSL Property Services, owner of letting agents Your Move and Reeds Rains.
Meanwhile, big players such as Santander and Leeds BS have increased their buy-to-let mortgage rates as the eurozone crisis has pushed up the cost of borrowing.
Leeds BS raised its two-year, fixed-rate mortgage from 3.99 per cent to 4.35 per cent, increasing interest-only payments on a £150,000 mortgage from £499 to £544.
However, experts say there are still good investment opportunities for landlords because rents are expected to stay high and house prices stagnant for the next couple of years.
Many believe the dip in rents was due to tenants buying their first home before the stamp duty holiday ended in March.