Buy-to-let flourishes in credit crunch

Casualties of the tougher lending criteria applied to mortgages are expected to fall into the welcoming arms of buy-to-let landlords - who could see rental income climb as much as 14pc this year, according to estate agents Knight Frank.

Emma Thelwell, Daily Telegraph - 30/10/2007

Despite a slew of warnings earlier this year that Britain’s love-affair with buy-to-let property could meet a grisly end, with overstretched landlords defaulting on their mortgagees, the market has been healthier than expected as the number of mortgage approvals drop and people turn to renting.

Liam Bailey, head of research at Knight Frank, said: “Buy-to-let activity has remained high, confounding many of the more pessimistic economic commentators, and in many markets investment activity has risen to record levels.” - full article