There may be trouble ahead...

... for unprepared landlords.

It sounds like a fairly basic statement, but after weeks of stories highlighting how bou-to-let mortgages were leading the market, we've come across a number of more troubling news today.

Specialist broker Mortgages for Business reports that one in ten residential landlords has been asked by their lender to move on to another lender, mainly due to RBS and Brandford & Bingley wanting to reduce their exposure to the property market or - as is the case for Bradford & Bingley - looking to exit the market completely.

At the same time, UK Asset Resolution (UKAR), the state-owned lender, reports 100,000 customers in danger of defaulting on their mortgage. Many of them are landlords whose interest-only mortgages are due to mature by 2020 and who have no idea how to pay off the loan, according to UKAR. 

On Friday, BDRC Continental reported that single-property landlords were struggling to keep on top of payments.

All doom & gloom? Not necessarily. As with much of the news we've had on property investment since the recession started, it goes to show that well-prepared landlords with solid finance models and well chosen properties can weather a storm.

At the same time, the current recession will hopefully serve as a cautionary tale to those looking to invest in property in the future - and here are a few things to consider no matter what the economy is doing: ensure you have the funds and finance in place, don't fall for deals that look too good to be true (they usually are) and select your property(ies) wisely.

Sunny & dry weather? No, thanks

While we were all enjoying yesterday's sunshine, 'our' trees in Teaghlach Wood in Perthshire would have breathed a sigh of relief when today turned out to be a little cloudier.

Believe it or not, when the whole country was complaining about the never-ending rain over the past couple of weeks, our trees couldn't have been happier. Trees4Scotland's Angus Crabbie explains: "Trees really do love rain as it helps them grow, especially when they're young."

And while we were rejoicing about finally dusting off the barbecue again, forests are looking forward to the next rainy day to continue to develop.

There is a more serious side to this story as well: While trees need rain to grow, reforestation in general is one way to prevent landslides etc as the roots help avoid soil erosion - a natural contribution to our flood defences.

Cullen Property has teamed up with Trees4Scotland to offset the carbon footprint of our managed flats. To find out more or to get involved, please email us.

Olympics let down?

Summer time lets in cities with large events tend to be popular and increase rates well above and beyond average rentals achieved. Edinburgh's Festival season is a great example.

This summer, with the Olympic Games due to start at the end of the week, a number of landlords in London and other Games locations were looking to cash in on their properties. However, while Buy-To-Let mortgages continue to be in demand, Olympic lets simply are not flavour of the month and many remain available.

Research by online publication Landlord Today has shown that Olympic lets in Chelsea and Stratford remain available, to name only two locations. One of the reasons may be the rates offered which are in some cases nearly triple the rate that would normally be achieved in the area and landlords are now facing voids.

On the other hand, there are positive Olympics-related property news as well: Lloyds TSB reports a 33% increase in property prices in the 14 postal districts closest to the mains sites of the Olympic and Paralympic Games in London's East End. In March 2012, average properties sold for just over £270,000 whilst the going rate was just over £205,000 in July 2005 when London was awarded the Games.

A new breed of landlords

Accidental landlords have been one of the property industry's buzz words for a few years now. However, there appears to be a new breed of landlord out there now.

An insurance company has looked at thousands of applications from new landlords and noticed a distinct trend towards pensioners renting out property.

One of the reasons will be the slowdown in the property sales market, making it harder to sell up and downsize - especially when renting out and downsizing are a great alternative. Whether these more mature accidental landlords are willing to stay in the market for the long run or will take the first exit when it becomes available remains to be seen. In any case, accidental landlords are here to stay until the economic climate changes.

How popular is Buy-to-let really?

Over the past few months, there's been any number of stories about buy-to-let mortgages buoying up the property market. Interestingly, Moneyfacts.co.uk has now published research that shows the number of BTL mortgage products on the market has dwindled from over 2,000 in 2007 to just over 400 today.

What looks like bad news at first is actually a sign of improvement compared to 2009 when the number of mortgage products dropped to less than 200 for those looking to rent out that home.

On a daily basis, therefore, what does it mean for our investor clients? On average, buy to let mortgages are still easier to arrange than residential mortgages, especially when it comes to those with smaller deposits.

However, if you are looking to invest in property, being able to put down a sizeable deposit will give you a much bigger choice of mortgage products and access to better deals. As a consequence, it may be worth looking at a slightly smaller buy-to-let property - three or four bedrooms rather than six, for example.

One thing to bear in mind, though, is the fact that you should not compromise on the location. It's the one thing that can't be changed.