Buy-to-let crisis 'to trigger property fire sale'

Hundreds of thousands of buy-to-let properties in England will become loss-making by the end of 2023, according to analysis by the consultancy Capital Economics, as landlords are forced to endure steep increases in their interest rates. Capital Economics estimated 365,000 buy-to-lets will become loss-making by the end of 2023 as their current tracker mortgage deals expire. There are about 4.5m rental homes in England, meaning losses will hit at least 8% of stock – or one in 13 properties. A further 182,500 buy-to-let homes could becoming loss-making in 2024, if rates do not fall. Experts said these “timebomb properties” will drive down house prices across the market even further, as landlords sell up. 

The Daily Telegraph (19/12/2022)