Buy-to-let landlords 'pessimistic'

Buy-to-let investors are becoming increasingly concerned that they will not receive enough rental income for their properties, it has emerged.

A poll conducted by the Royal Institution of Chartered Surveyors has revealed that many landlords are pessimistic about rental yields, with lettings director at Hamptons International Kate Whotton noting that many investors have dropped rental prices, the Financial Times reports.

According to Ms Whotton, landlords are cutting rental asking prices by five per cent.

Furthermore, she added that tenants are increasingly asking for walls to be repainted or wooden floors to be laid.

"Landlords are having to be flexible on price and comply with tenants' demands," she told the paper.

This news follows recent reports that some landlords are falling behind with mortgage repayments.

According to financial advisor Hargreaves Lansdown, as many fixed-rate mortgage deals end, 10,000 buy-to let investors are in arrears.

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