One area of the housing market seems to be performing well, and that is definitely the tenent loan and commercial market. While many loans are going into default right now, for the time being tenent loans appear to be immune. While experts are not certain how long these trends can continue, for now at least banks with high percentages of commercial or tenent loans appear to be holding on without too many defaults. Nigel Terrington, Paragon Group chief executive, says: “There is still demand from new landlords to enter the market and there opportunities remain for those investors, but professional landlords hold the majority of stock in the private rented sector and these larger scale investors account for the bulk of the new transactions.”David Whittaken, from Mortgage For Business, states, “The last few months have been amongst our busiest ever as professional landlords respond to the highest rental demand they have seen for years and add properties to their portfolios at good prices. We can see that the owner-occupier, and in particular first-time buyer, is having a tough time of it but inevitably this has helped to bolster our clients’ businesses.’”
Related reading: Tenent Loan
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