I think that rental prices will hold up and probably increase as more people sell their houses in order to rent. With house prices falling, an increasing number of homeowners will try to sell their house and cash in while the prices are high. These people will then rent.

Buy-to-let landlords that have overstretched themselves and have equity of 10% or less could be in trouble when it comes to refinancing. They represent a greater risk to lenders. If they do get financing, it will be at a premium rate. Landlords that have a good amount of equity in their portfolio (my guess is 25% or more) will be fine.

Property has always be a long term winner but in 2008 the value of landlords portfolios will fall and banks will become more cautious. If so, landlords will find it hard to get the finance to grow their portfolios. Better to wait and watch.

I take all news from the National Landlords Association with a pinch of salt. They have a massive vested interest. When making investment decisions, you should rely on unbiased information.