BTL threat to banking profits

Speaking earlier this week at the Axa Framlington Live roadshow in London, Luckraft – manager of the Framlington UK equity income fund – said while UK banking shares had in recent months contributed strong income gains, the housing market could yet see a “wobble” created by overcapacity of buy-to-let properties and alongside a rise in the number of bad debts, and this could in turn affect the profitability of UK banks. More specifically, he suggests while the housing market has seen a relatively ‘soft’ landing in the last few months, banks could begin to feel the pressure of buy-to-let len...