The Council of Mortgage Lenders (CML) forecast today that it expects the number of households more than three months behind on their mortgage payments to rise to 500,000 by the end of 2009.
It also predicted that a sizeable share of next year's 75,000 repossessions will be buy to let mortgages.
Keshav Thukaram, Managing Director of buy to let property services portal Smartlandlord.co.uk, comments:
"The buy to let sector is not immune to the unprecedented economic difficulties we are experiencing at the moment. Rising unemployment may lead to increase in arrears in both rental payments and mortgage payments in 2009."
"There is no denying that the New Year will be very difficult for many landlords and tenants alike, particularly for those buy to let landlords with high gearing and ‘reluctant' landlords who are renting out property they cannot sell in the current market."
"We are closely monitoring the situation and are working with landlords across the UK to develop solutions to limit the impact of rental voids, mortgage arrears and the threat of repossessions in the buy to let sector."
