Citywire: The future of buy-to-let: boom or bust?

Latest predictions from buy-to-let lender Paragon, are, as always, optimistic. Paragon maintains that landlords are looking forward to an increase in tenant demand and the opportunity to increase rents. Signficantly there is virtually no mention of falling property prices. But this is at odds with figures from the Association of Residential Letting Agents where the latest survey reveals that in some areas, particularly those with a high proportion of new build flats, rents are actually falling. Moreover, in the face of falling property values, some buy-to-let investors are clearly bailing out. The results from recent auctions where a significant proportion of properties are former buy-to-let properties show that almost 50% are failing to meet their reserves.